Hedge Funds Shift Franc Funding Strategies, EUR/CHF Range Bound

Hedge funds have significantly increased their net short positions in the Swiss franc to near a two-month high, shifting funding strategies away from the yen and towards the franc. This move has influenced EUR/CHF liquidity flows and supply dynamics in currency markets.

The EUR/CHF cross is currently trading at Fr.0.9355, marking a modest decline for the session, with short-term bearish momentum and low volatility prevailing.

Despite oversold technical readings and neutral trend signals, downside risk dominates the short-term outlook, with a high probability of remaining within the Fr.0.9308 to Fr.0.9402 range in the next two to three trading days.