Saxo Bank believes that one of the consequences of the Euro-zone (and Greek) drama is that the CHF may suddenly appreciate, causing it to being de-pegged and severely impact traders who have shorted this currency. Apparently Saxo Bank believes that the CHF potentially poses a considerable risk to some of its clients – and I’d say rightfully so. With the peg of EURCHF at 1.2000 investors have sold CHF and bought EUR for months, both Forwards and in Options. Clients with short CHF exposure could be negatively affected if major turmoil in the euro or euro-zone occurs. Beginning with the Greek elections on 17 June, the ... (full story)