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EURCHF Hits Fresh All Time Low
When looking at the price of gold, one wouldn't necessarily get the impression that there a material flight to quality. After all the shiny metal is a whopping $40 from its all time highs, courtesy of recent profit taking in the best performing asset class in 2010. Yet not all is well in Europe, where the EURCHF just plunged to a fresh all time low, as the flight to Swiss safety continues. At 1.2683, the EURCHF was lower in... never. What is odd is that for the time being this asset reallocation is ignoring precious metals. Yet the currency which is so far the most proximal compliment to gold, courtesy of the SNB's relatively prudent monetary policy, is indicating that gold should also be at record highs. In other news, expect Philipp Hildebrand to start panicking sooner or later: at the current rate of collapse, Switzerland can kiss its exports goodbye.
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It's a testament to the quality of the previous articles on this issue and expert posts on ZH that we all saw this coming.
all the snb has to do is print, i mean sell some bonds. whats the problem. people will always need watches, what are they going to do , get the time from their cell phone or something? and we all love chocolate and coocoo clocks right?
Cuckoo clocks are more of a German thing (black forest). :)
Could this be why we stopped stocking Swiss Miss in our office kitchen? I knew this would happen. :(
(of course we now have Nestle hot cocoa mix instead, so go figure)
Won't they make a move to devalue alongside the EUR and USD to save the export market they so depend on?
they have done so much in that respect... they fear that they are weaker then the market!
Well, I would hope they surprise the markets with a march 2009 type 1000 pip intervention....
...could be "faded" within 2 days.... ouch!!!
Spain ,Portugal are in default...does any hedge fund want to destroy the EURO come on its easy¡¡¡¡¡
I've just seen a interview with Faber in which he also told it was just a matter of time.
Hearing that guy speak really makes you depressive...
Buy the dip????
Why don't the Swiss simply ask their banking system to 'fess up to the true extent of their off balance sheet liabilities ? At that point, the CHF will halve against everything, export problem solved.
Indeed, or wait until the Hungarian government forces conversion of Swiss Franc mortgages back into HUF, at a fx historic rate, as they have been threatening.
The Swiss trait of enforcing bank secrecy is great if you want to hide your money, but not so good when you want to know if their banks are actually solvent.
Indeed, or wait until the Hungarian government forces conversion of Swiss Franc mortgages back into HUF, at a fx historic rate, as they have been threatening.
The Swiss trait of enforcing bank secrecy is great if you want to hide your money, but not so good when you want to know if their banks are actually solvent.
The pair hasn't gone anywhere major. Still trying hard to bounce off its -50% Fibonacci retracement level.
Everything is coming down to the yield on the UST 10-year note. It is going to be coming back to 3.0% over the next several weeks. Watch for ramps in EURJYP and GBPUSD over the next ten to fifteen trading days.
If the ten-year starts to sell off again, all pairs are at a very precarious position; staring over the cliff, as it were. EURJPY and SPX could plunge. Be very careful. For all intents and purposes, this is it right here. Strong decisions are going to be made very soon.
Best of luck trading!
Orly
UK's Daily Mail Money Section:
"Savers fed up with derisory deposit rates are cashing in on the stock market surge"http://www.dailymail.co.uk/money/article-1339799/Savers-fed-derisory-dep...
No words need to be spoken...
The delivery for Dec gold is coming to an end. But the warehouses of the Comex seem rather tranquil. There are few activities there. It seems quite fishy.:S
bitch chocolates
swiss has nothing to offer when they gave up banks secrecy and outsourcing swiss army knife and rolex.
swiss has nothing to offer when they gave up banks secrecy and outsourcing swiss army knife and rolex.
swiss has nothing to offer when they gave up banks secrecy and outsourcing swiss army knife and rolex.
swiss has nothing to offer when they gave up banks secrecy and outsourcing swiss army knife and rolex.
Short Switzerland¡¡¡¡¡¡¡¡¡¡¡¡¡
Do they know something in advance ... EURCHF signalling risk off due to .. BAC, JPM, and ... http://marketcyclesresearch.blogspot.com/2010/12/meredith-whitney-gives-states-and.html
This is orchestrated by the SEC. If they can keep the swiss franc high enough in value all those pre-op trannies that do porn for them will have to do 4 times more porn to buy their surgeries.
As usual, currency volatility will matter little to retail stocks, which continue their relentless meltup unfazed by the Euro, inflation vs. deflation debates, emerging market meltdowns, bond crashes, etc.
Hey, Switzerland has NO exports, just tourism and banking. They are sitting pretty. If I had to live in Europe right now, I would choose to be a Swiss citizen, and maybe have a vacation home in St. Tropez.
who needs exports when you can have...imports? i want sharks with frikkin laser beams on their frikkin heads
Hey, Switzerland has NO exports, just tourism and banking. They are sitting pretty. If I had to live in Europe right now, I would choose to be a Swiss citizen, and maybe have a vacation home in St. Tropez.
Thats actually not true. The Swiss have decent sized pharma, engineering, food manufacturing and technology sectors; you have to look at not only publicly listed, but also privately owned companies.
Thank you for this display of utter ignorance.
You'd be amazed at some of the products the Swiss export. The specialty inks used in making currencies, including the USD, are all exclusively Swiss.
check out SICPA:
http://www.sicpa.com/22/24/35/625.asp
has anyone see the correlation (breaking) between 10yr Bund yield and the EURJPY??
What are the implications?tia
There is plenty of commentary discussing the impact on currencies of the move in bond yields, but i really don't know. The gap in now huge. The S&P 500 and the Euro are in lockstep via risk carry trade in the EUR/JPY (ready to rebound?, inverted H&S pattern?), but does not bode well with german government bonds rising (safe-haven demand)...
These problems have a way of coming back to haunt us. I looked up the subject and back on the 31st of August I remember reading this about the Swiss.
Of course this also hurts those in Eastern Europe who borrowed in Swiss Francs. I gather Hungary was the worst.http://t.co/gRRmxmm
Tex - I can't seem to focus on you comments with that avatar
A lot of EEuro debt is CHF-denominated. That is the reason for the strength along with coordinated devaluation of the Euro.
The problem with lending as a mechanism to cause devaluation and inflation is that when/if cascading defaults occur, everything runs hard in the opposite direction.
oh...it seems that my swiss watches collection is increasing in value....buy the dip...wear rolex(or your fav. swiss maker)...same thing