Morgan Stanley's Hull Recommends Selling Euro Against Switzerland's Franc

Morgan Stanley advised selling the euro against the Swiss franc, because a rise in borrowing costs may cause stress in the euro area’s economy, while in Switzerland “leading indicators of activity remain sound.”

“Switzerland’s large current account surplus is likely to mean that the franc will not weaken much further,” Stephen Hull, London-based head of global currency strategy, said today in an e-mailed note. Investors should bet the franc will appreciate to near 1.28 per euro, he said. They should end the bet if the franc weakens to 1.3950.

The franc appreciated 0.2 percent to 1.3603 per euro as of 3:07 p.m. in London.

To contact the reporter on this story: Paul Dobson in London at

To contact the editor responsible for this story: Daniel Tilles at

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