Net-short exposure to Swiss franc futures were at their most bearish level in over 6-months, as of Tuesday last week. Gross shorts were at a 17-week high, although gross longs have been ticking higher in recent weeks. And we think we know why. The SNB have signalled to markets they can cope with a stronger currency (within reason) and suggested they may finally hike rates from the floor of -0.75%, should inflation continue to beat expectations. And hawkish comments from SNB (Swizz National Bank) on Thursday saw USD/CHF plummet during its most bearish session in nearly six years. So bearish are clearly capitulating at ... (full story)