Forex Flash: Heavy shorts for the USD/CHF offer reward – UBS

FXstreet.com (Barcelona) - The GBP's fortunes were mixed in the wake of last week's budget. Indeed, the GBP/USD had another poor week, with asset managers and private clients accounting for significant sales in the pair. Nonetheless, according to Research Analysts Gareth Berry and Geoffrey Yu at UBS, “the BoE's new remit did not push the boundaries in any way, and relative to the problems in the Eurozone, clients appeared comfortable with the UK which led to EUR/GBP sales.”

Total selling was the second largest in 2013 on a weekly basis. The franc, on the other hand, was bid against both the dollar and the euro. Heavy shorts in the USD/CHF offer strong risk: reward for reversal if 'risk on' is the theme heading into Easter.