Gao Jian suggests shorting the Swiss franc against the pound because the Swiss Central Bank may cut interest rates

On August 16th, Jin10 Data reported that Goldman Sachs suggested shorting the Swiss franc against the British pound, citing the possible interest rate cut or direct intervention by the Swiss Central Bank to prevent the Swiss franc from pumping too fast due to safe-haven fund flows. Goldman Sachs forex strategists Michael Cahill and Lexi Kanter recommended going long on the British pound against the Swiss franc, with a target of 1.16 and a stop loss of 1.10. According to the Swiss National Bank’s data on current deposits and “background clues from past actions of the Swiss National Bank,” the Swiss National Bank may have intervened to curb the rapid rise of the Swiss franc. In the context of the Fed’s possible need for faster and larger interest rate cuts to stabilize the economy, decision-makers in Switzerland and Japan may need to adjust their policy strategies to counteract the impact of the appreciation of safe-haven currencies.