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Europe Scrambles For Swiss Safety As EURCHF Plummets At Open To All Time Lows
Someone is very, very nervous in Europe as it took precisely zero time for the various CHF crosses to plunge to all time lows. The chart below shows the EURCHF which just opened about 140 pips lower than the Friday close. And while there is little if any movement in the crap currencies, i.e. the USD and the EUR, the flight to fiat safety has never been as profound. Since the CHF is a direct proxy of gold in the commodities space, look for gold to take out $1,600 as early as a few hours from now when the market reopens. Also, expect a possible SNB intervention any minute as the Reuters IFR article below speculates.
EURCHF:
From Reuters:
SNB's Vice-Chairman Jordan highlighted this week that not only were they "very concerned" but that they were "monitoring the euro franc exchange rate very closely". We now have suggestions that the Swiss would look to impose capital controls in order to limit safe haven inflows and thus CHF strength.
The comments from Jordan at the very least mean that the market will push out the timing of rate hikes and flatten the money market curve further. Under normal circumstances these lower yields would help to take the shine off a currency.
So what are the options? Firstly, capital controls while being in favour in the EM world and endorsed by the IMF as a policy option would likely do more damage than good to the Swiss economy. Its big banks (still too big to fail) have been hurt by the stronger CHF and talk of new round of job losses has already surfaced as a result.
Capital controls for an economy that gains much from its financial sector would not be appropriate. Second, there is the option of negative interest rates. A look at the Swiss interest rates implied by USD/CHF forwards shows that we are already there with regards to negative rates. If one works out the implied rate on the 3-month then we have a rate that is NEGATIVE 1.50-2.50%. So it is debatable whether a policy of officially shifting rates into negative would have any real impact.
This leaves the potential that when the SNB deems the CHF to have increased the risks of deflation we may get more action on 1) either the intervention front or 2) government support for exporters to help compensate for the stronger CHF.
Which is preferred will depend upon whether the SNB can overcome the criticism of its prior aggressive intervention which resulted in record losses last year. The problem with intervention is that the small open economy would be under pressure to meet what is a global demand for CHF and thus would continue to be ineffective. A better option is direct relief to the exporters but at the very least the concerns over CHF strength means that rate hikes from the SNB is still some distance away.
So far the concern that the SNB will do anything is not preventing traders from pushing the EURCHF to the unprecedented border of 1.13 any second. Next up: rumblings of Euro-Swissy parity?
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The Euro is fine, it's me I'm worried about.
August Gold $2 from $1600.
safety first my friends...
http://theopeningrange.blogspot.com/
http://theopeningrange.blogspot.com/
http://theopeningrange.blogspot.com/
and Silver is skyrocketing!
Gold on it's way up. Do we see $1600 tonight?
+1
Done deal sheepikins, a done deal. Not so baaaaahd at all!
A frenetic dash to $40 Ag and $1600 Au.
Hard to believe that stocks will fall very far with gold rocketing up.
Somebody was probably tipped off that the "Obama Jobs and Stimulus Plan" is going to be unleashed on the market next week.
You need to make some calls for your pal Libertarians for Prosperity.
He's looking for some hot tips.
"Obama Jobs and Stimulus Plan" is going to be unleashed on the market next week.
Green Shoots; V-Shaped Recovery; Kick-start the economy... Will this one be shovel ready?
Oh wait... we don't believe that Keynesian crap any more.
But in Soviet Russia, the people didn't believe the crap about five year plans and record productions and Worker Paradise tripe either, but they went along with it until the system collapsed.
So will America.
CFTC Cotts realeased Friday show commercials added over 42,000 net short
contracts.
Imagine where the POG would be had they not supplied the PAPER MARKET with over 4.2M New Ozs in just 1 week!
The paper game goes on, but not forever...
interesting call on gold price
i'm looking @ a screen at :20 after the hour: 1597.60 + 3.50
PM Launch at open was a success. Establish orbit for burn on transition to the moon. $5,000 Gold and $500 Silver.
In other news the EURO was found dead behind a bar in Greece.
Were its pants down around its ankles?
Eventually, the O-Team is going to make it mandatory for regional and community banks meet a small business lending quota pretty soon. Otherwise, they will have to pay punitive tax rates if they fail to do so.
Last month, they already mandated more "Fair Lending" guidelines, lending to minority and female-owned businesses. Our bank had to hire two more compliance officers just to keep up with the extra paperwork and forms required with new small business loan applications.
More Marxism and socialization of yet another sector of the economy.
Gosh, looks like "General" Jim will get another star while private Robo leans on his shovel by the latrine.
+1
"our bank". given the number of posts you make at zh, and the time it takes to think of something to write etc ... if you really are more than a part time, contract 1099 processor as you say then not only are you the ultimate dumb money indicator but you are a thief, essentially stealing money through mindless internet surfing and posting. which begs the question: who supervises you? having supervised large staffs in my day if you were on my team i would have been all over your computer tracks and would have had you off my team in a flash, and got somebody who wants to put in an honest days work for an honest days pay.
awesome! The economic collapse is nothing that can't be solved by even MORE diversity!
Lord knows minorities have so many successful businesses and the repayment rates of loans to minorities are spectacular! Those racist FICO scores are a minor nuisance in the path of the diversity juggernaut
ouh Silver
You sell US$, you get hosed, so... you go anywhere else you can. Getting kind of expensive for the PBOC, isn't it?
Didn't read the above posts - font is really small (anybody else?), but why wouldn't our bullshit, worthless, totally crapping USD not surge for no other reason than the reserve status? Why don't I get the good memos anymore...who d'ya have to sleep with these days to rate?
There's an add-on for Firefox, called NoSquint -- install it.
Looks like Gold and Silver are about to make a straight beeline North for a bit......JMO
$1599 Bitchez
1599 again?
$40 Silver ?
sorry :(
Why? It's beautiful!
i'm lookin @ 39.69 goose drank wine?
i wonder if silver_girl likes this guy? hi yo silver pic
You're singing my song. You can say $40 silver as many times as you like...until silver is north of $40. Then $50 silver...and so on...
Agree. Say $40 Silver all you want. :) Does it break $40 before Asia walks in?
Where is GOLD_GIRL when we need her???
ES should be lock limit down based on the Zero Hedge headlines the last 3 days.
The only thing LOCK LIMIT DOWN is your credibility, after all the bullshit.
robotard: a troll's troll.
That's a man talking his book..I say... My book long gold. short AAPL big, but by a vert spread...and short C, GMCR, Soda...long Rimm Market has a debt headache...check the charts Robot....rolling over.....also short leaps on IYR
i think on option expiry on july 26th we will see an even gold price such as 1600 or 1550, what do you think ?
I think gold tanks in that time range. Every month, without fail, tankage. I am amazed at just how "on edge" the whole fiasco can feel and still we get these dips. I think we have a few more rounds left, it is stunning how the cap is still on this shebang.
Maybe when we do a third release of oil from the strategic reserves? Or the fourth? Now that is what I call qualitative easing, mmmm boy, Lube it up, oh yeah.
Sinclair (KWN) speculates that $1754 will be a watershed price for gold to start leapfrogging into the stratosphere.
He's usually right. He didn't say why... I suppose it's a technical milestone, anybody know why $1750 might be extra significant?
This recent piece by Armstrong gives a hint--notice the top of the uptrend channel vs the breakout line in the 1st chart:
http://www.martinarmstrong.org/files/Outlook%20for%20Gold%2007-13-2011.pdf
No worries...ppt will have it stable by NY am...
What is the symbol to buy Swiss Franc on Forex? I see there is a FXF ETF, but can you buy the Swiss Franc directly or only EUR/CHF?
You can buy Swiss Franc Futures: /6S
Jewish grandmother in Israel tells the truth about fake bankster Jews in America.
http://www.youtube.com/watch?v=yjqN4dtbSOA
Jew: "They say there are lots of anti-semites out there"
Grandma: "Where? Abroad? Then why don't they come here? If there are anti-semites, why don't they come here [Israel]? Are they waiting to get killed?"
Jew: "Why don't they come?"
Grandma: "Well, they love money.Jews love money. Jews are crooks. A Jew is a crook. They make money there. Why should they come here [Israel] and work for money if they can make money there without working?"
Jew: "Don't they work there?"
Grandma: "They don't work. That's what I'm saying. They have money without working. If they come here, they have to work"
Jew: "How do they have money without working?"
Grandma: "How do they make money? Interest. lending money at high rates...selling liquor....wine...Jews know this monkey business. Jews know all about monkey business"
Grandma: "I tell you, I am the real Jew. Money does not blind me."
Jew: "But you talk like anti-semites saying Jews don't work"
Grandme: "No I don't...if they want to stay abroad...Are they waiting for another Hitler to come and kill them before they run away?"
Even jews are ashamed. There are many decent jews. They know if they don't police themselves, then world will give rise to the second coming of Hitler.
The last time i mentioned jews that many times in one post i got junked to the moon. And you haven't even got one. God damn. I now know what it feels like to be persecuted.
USD/CNY 5.8625 LOL
qe on the qt. keep it here ok. And as for the Zeuro, oh please, when you have to trade it it for yodellers chocolate bars and priced out unmarketable watches, well.Let us pray.
silver making another run toward 50 this week? oh yeh..........
DORM RAID
Thats a very possible hustle the Zeuro Swissy gap.
This is a Sunday, and we all remember Mayday 2011 in silver.
There was just an ugly increase in Gold's oi last week, so I am braced for a gold raid this time, although i thought they might give us a 1600 print and pull in some weak specs. maybe they will.
I could give a flying about denominators, go raid if you like, i count ounces not asswipe denominators.
It appears they are attempting to control PM's now. Looks like the same tactic used in May has just started. Considering what's happening to the EURO I don't know what the outcome will be. Can they print and dump that much paper and will anyone buy that paper instead of physical Gold and Silver for delivery.
Stupids buy paper. Smart buys PM for delivery.
Every time something good happens to Casey Anthony, this pair takes a big tumble.
http://www.zerohedge.com/article/eurchf-plummets-casey-anthony-verdict
When her book deal is announced, watch out for parity.
I'm sure multiple hedge fund managers with billions under management are jockeying around trying to finance Casey Anthony's coming "career surge" and at the same time trying to position themselves where they can meet her in person and grope for those big boobs of hers.
Looks like the CARTEL bashed gold back down to Friday's close.
Frank "I Totally Missed It" Barbera is still ultra bearish on most everything this weekend:
http://www.netcastdaily.com/broadcast/fsn2011-0716-1.mp3
How much did you leave on the table when you were panic selling back at $1200? Couldn't get to the coin shop fast enough.
Just $50 until you can interview General Jim. LOL. But momo, you promised....
Looks like the CARTEL bashed gold back down to Friday's close.
very possibly, RT, still too soon to tell, maybe. the last london fix was friday @ 1587.00. da boyz in the City often have that magic carpet thing where the price just seems to come back to them as they open, they don't gap, get hung out to dry, or anything!
whoever placed them, it looks like sell orders hit the trading floor(s) @ 1598.9x. surprise, surprise!
bashed it....bashed it.... all the fuckin' way back to friday's close! Holy shit! I won't be able to push the "sell" button fast enough. Where's that little douche Spalding? what did he call it? "blow-torched"!
LOL! he probably has people chasing him around trying to kill him due to some unforseen flaw in his business plan and financing.
ok, back to 1594-5. random walkin the dog. see if it slouches to 1587 for london. night-night, blythe!
Are you seriously psychotic or is your refusal to be in touch with reality voluntary?
Spot gold rose to an all-time peak of $1,598.41 and U.S. gold <GCcv1> hit a record high of $1,599.20. From 3 hours ago
Swiss Franks have less value than the unbacked USDinker dollar coins. You know the presidential ones which are costing tax payers hundreds of millions. They look like gold but melt value at current mix is:
2007-2011 Presidential Dollar$1.00 $0.0755119
7.55%
Throw that paper fiat swiss frank into the furnace and see what the melt value is. At least 7.5 cents is worth more than ashes.
"They look like gold ..."
The new USD coins are made of brass.
The European Central Bank just threw Greece under the bus.
ECB Trichet: Reiterates Strong Warning Against Greece Defaulthttp://imarketnews.com/node/33844
I would have to say its more about Chinese Yuan USD/CNY 5.8625 thats allmost 9%
Going to be another roller coaster week in Europe, no doubt about it.
Actually it's Merkel who just said this weekend for the first time publicly (on live TV) that a Greek restructuring can't be ruled out. And that in order to avoid it, private holders of Greek bonds must make a "voluntary" contribution, ie sign up for a haircut.
Trichet's comments were actually generous to Greece. He suggested that the ECB might still be able to take some Greek bonds as collateral despite a selective default, and that if not Eurozone governments could come up with some way to support Greek banks by providing collateral on their behalf. Not sure Merkel is up for that plan.
the cartel has to tread carefully. if the cartel slams gold and silver too much they stand to lose even more on their shorts given that there are a lot of investors like me waiting to pounce on physical on weakness, just as many of us did on the big smack down from $50.
like i said friday. sure is nice to own the physical and not have to sweat out greece, the s&p and the debt limit impasse.
39.84
silber
39.81 $
4.47 pm
close to the dateline
you know what's sad? I bought another tube of silver Maples [25] on Saturday......and I was the only one in the store. People just do not pay attention until it's too late.
Right. You don't think they are going to put a whole big pile out front and then try to charge a high price do you. The perception of scarcity is half the battle....
You remember the gun thing from a couple years ago don't you. The gun stores had all these signs up telling the customers that Obama was intent on taking away their guns. I notice a lot more guns on the market lately.....
gh
However there is a hell of alot taking concealed carry courses.
This is the calm before the storm. I don't do coin shops, but those will be packed soon enough.
I see Gold resistance prior to 1600 and almost 40 for silver. The morning open is going to be interesting for EST trading.
Ahhh I see Divyang Shah has made it onto the main pages, i have read his pieces for years, not a big surprise, he's one of a few at IFR that really seem to know what they are talking about, dont make a meal out of news either(whether thats because they don’t get much space, i dont know)...often wonder why some of them are in journalism and not on a trading floor.
The Swiss franc seems to be doing well but their economy (GDP) will plunge due to the massive cost increases of their services and goods imo.
Gold hits $1599.90
And John Taylor now calling for Eur/Chf parity.