FX CHAT: Deutsche Recommends Selling GBP And CHF

against EUR and USD, as GBP and CHF "should lose out to an unwind of safe-haven flows." In the case of CHF, Deutsche expects Swiss-based investors to resume portfolio outflows, which will weigh on the currency. Additionally, with the outlook for the USD improving, alongside no change expected from the SNB due to the benign inflation outlook, DB sees "conditions as ripe" for a breakout in USD/CHF and EUR/CHF. For GBP: "The continued dramatic decline in euro-zone risk premia should hurt GBP the most given that GBP has been one of the biggest beneficiaries of 'safe haven' inflows from the euro zone." GBP/USD trades at 1.5207, EUR/CHF at 1.2458 and USD/CHF at 0.9686.

(clare.connaghan@dowjones.com)