Flash: Retain a short USD/CHF - JPMorgan

FXstreet.com (Barcelona) - Today's FOMC is a big event risk for US stocks and risk markets in general, and according to Junya Tanase, Currency Analyst at JPMorgan, "the bias seems to be skewed towards a dovish tone in the statement and/or at Bernanke’s press conference, which would provide some lift to risk markets."

Amidst such pro-risk thinking, JPMorgan's Tanase recommends to nevertheless not lose the focus on a possible short in USD/CHF "as a hedge for the case where the assumption of a short-term relief for risk markets from a dovish FOMC proves wrong..."

"If market conditions remain fragile with firm volatility and poor liquidity even after the FOMC, we will likely see further unwinding of stretched CHF shorts" Tanase added.