Bank of America Merrill Lynch FX strategy Research updates its G10 balance of payments (BoP) analysis following the release of Q2 2017 data, outlining what they think will have FX implications in the quarters ahead.
In particular, BofAML notes that the biggest move in combined portfolio and FDI flows has come in Switzerland which saw a surge in inflows equivalent to 23% GDP.
"Switzerland has continued to see net portfolio outflows as foreigners sell Swiss equities. This has been a consistent theme underpinning our out of consensus view for a weaker CHF into 2018 and we reiterate our view that the risks to our 1.20 EUR/CHF are to the upside," BofAML argues.
Source: Bank of America Merrill Lynch Rates and Currencies ResearchOriginal Article
