Trade of the day - Long PLN and EUR vs CHF on cenbank speak:
CHF (-): SNB Jordan to reiterate overvaluation (1205pm SG time). Target EUR-CHF higher towards resistance 1.1642 (24hr high), 1.1667 (48hr high). Current 1.1604.
PLN (+): NBP minutes neutral or mildly hawkish. Target EUR-PLN support at 4.205 (24hr low). Current 4.2129.
EUR (+): ECB minutes could show more internal dissent than Draghi let on. Germany "new grand coalition" talks are emerging. Target EUR-USD towards or past 1.1846 (15 Nov high), 1.1852 (19 Oct high). Current 1.1819.
Another plus:
This trade is dollar-neutral.
Visual: EUR-USD (blue) vs PLN-EUR (red) and CHF-EUR (pink) (Rebased 100 = 1mth ago)
Mild risk-off this European morning --> overlaying this strategy with a long JPY and a short GBP
SNB Jordan was underwhelming. Closing trades in case of no-go for SPD-Merkel arrangement (would be bearish EUR and PLN, bullish CHF).
Closed trade for 0.4% gain (0.5% from long PLN-CHF, 0.3% from long EUR-CHF):
Long PLN-CHF:
Long EUR-CHF: