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Record Swiss Franc Volatility: 300 pips Swing After Numerous SNB Intraday Interventions
A 3 bps move in a currency in a short period of time is the endgame for any FX trader. The ECB is now indirectly performing stealth operations via the SNB. And as the net result is a weaker EURUSD, one could see the Fed's finger in this.
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Is this currency wars between sovereigns or between sovereigns and traders?
Traders don't have the swing a sovereign does. It's all about the race to the bottom! I'm waiting for BOJ to water their action as it's been getting too strong for their usual MO.
they may have pulled a fast one, slowplaying a monster hand. why not just let yen appreciate along the dollar as the two decade carry dies and then go on a commodity shopping spree. it may hurt exports in short term but at a relatively low opportunity cost as demand from the west is slacking and China needs like a decade to become a consumer powerhouse.
Easy as 1-2-3...
Press ReleaseRelease Date: May 9, 2010
For release at 9:15 p.m. EDTIn response to the reemergence of strains in U.S. dollar short-term funding markets in Europe, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing the reestablishment of temporary U.S. dollar liquidity swap facilities. These facilities are designed to help improve liquidity conditions in U.S. dollar funding markets and to prevent the spread of strains to other markets and financial centers. The Bank of Japan will be considering similar measures soon. Central banks will continue to work together closely as needed to address pressures in funding markets.
Federal Reserve Actions
The Federal Open Market Committee has authorized temporary reciprocal currency arrangements (swap lines) with the Bank of Canada, the Bank of England, the European Central Bank (ECB), and the Swiss National Bank. The arrangements with the Bank of England, the ECB, and the Swiss National Bank will provide these central banks with the capacity to conduct tenders of U.S. dollars in their local markets at fixed rates for full allotment, similar to arrangements that had been in place previously. The arrangement with the Bank of Canada would support drawings of up to $30 billion, as was the case previously.
These swap arrangements have been authorized through January 2011. Further details on these arrangements will be available shortly.
Information on Related Actions Being Taken by Other Central Banks
Information on the actions that will be taken by other central banks is available at the following websites:
Bank of Canada
Bank of England
European Central Bank
Bank of Japan (57 KB PDF)
Swiss National Bank (60 KB PDF)
U.S. Dollar Liquidity Swaps FAQs (51 KB PDF)
2010 Monetary Policy Releases Last update: May 10, 2010^^^^^^^^^^^^^^^ to infinity for you for sourcing some nice reading... Thank YOU! very much and my best to you in this lie of a reality we all suffer.
Sincerely, JW
the squid's tentacle may have a role too..?
fat finger
It looks to me like the franc is down against the dollar (1.15=>1.155), up against the euro(1.40=>1.42) while the euro is up against the dollar (1.22=>1.23). There must be some way to get rich with arbritage off of this...
from what i observed, if SNB holds EURCHF flat on a certain level, USDCHF goes up. if they allow EURCHF to drop, EURUSD goes down along with it. basically, EURCHF intervention is seen as CHF weakness and priced in against the USD.
You are reading it the wrong way, The CHF has fallen from 1.40-1.42 as this is quoted as EURCHF . IE you can now buy 1.42 francs with 1 euro instead of 1.40 francs yesterday. No arbitrage.....just good old fashioned intervention
Thx Juice, you are right...
whoa! The zombie EUR/CHF is back from it's grave (read: 30 pips/day range). Run!
Panic will set in soon. Just a matter of time. How in the world will JPM and GS report record profits this quarter with the markt collapsing. No melt up, means no profits. Is that the catalyst to send this ponzi market into oblivion finally?
Officially closed out all long positions when S&P went below 1110. Initiated a long SDS at 33.15. Will keep adding as we go lower. Appears that 1050 then 950 are next levels.
Sure Harry we believe you. You will probably tell us how you bought gold on this dip when it hits 1500. Thanks for the insight.
Please don't feed the trolls. :-)
Just junk him, continue the discussion over his head, and eventually he will go away...
For the record, this is the same guy who taught Stevie Wonder how to drive. Sorry dude - even Paris Hilton has more credibility talking about abstinence than you talking about financial issues.
So how much did you loose Mr Bull?
How is that crow tasting -MMMMM Crow!
I was hoping you would still be buying apple, because I wanted to tell you that Apple is in a MASSIVE bubble, one where it will lose half of its value over the next 9 months.
The FED has a fat finger too!!!! and they are not afraid, in any means, to use it!!!!
Thought process for the BOE? The currency of my enemy's enemy's swap is my short?
Beautifully smooth glide path on the S&P; The Beard is friggin' Capt Sully!
The word enemy invokes a mutual relationship. Something you both need to subscribe to for it to be valid. Like a Facebook friendship. America is an awesome enemy. They just do not hesitate to hate you back.
And now a request. This one goes out to The Beard, from all his friends in Europe.
http://www.youtube.com/watch?v=ZA2typ0uA8c&feature=PlayList&p=92F81938A8597F92&playnext_from=PL&playnext=1&index=78
Traders are re-shorting the pound & euro as we speak. Short cover bounce then they resume crushing it.
I love it...
I'd love it more if they didn't hold it to glacier pace. This is the same shit they pulled yesterday. 5 pips an hour down. Yes, I exaggerate, but it is basically like watching the Indy 500 on riding mowers. Sucks when it is up to Tokyo for some real pricing action.
Waiting for the ECB bankster filth to ban selling EUR! They love sending their trash paper on the big fast ride up; but takes an entire market session to creep its way down, the bankster filth fighting for their dead pig currency every inch of the way.
First intervention was last night and they haven't stopped. Swiss are thrilled to see a weak Franc against the dollar. The AUD move is a slaughter for the FX traders too. I don't envy anyone who didn't read the tea leaves there when it failed again to close above 0.95.
Each and every market category is now utterly manipulated. Why play the game when you never get the ball and the rules are constantly adjusted to the benefit of your opponent?
The market is headed lower not simply because of liquidity concerns. Investors worldwide are learning that rigged games do not provide positive outcomes.
You may want to read this article:
http://www.gold-silver.us/what_silver_gold_buys.html
What Do Silver and Gold Buy?
Bloomberg is saying CB franc selling is having the effect of strengthening the Euro against the overall basket, which might be unsustainable. what do ppl think of that?
"Kick start it Trichet," said Ben Bernake. He understood how these machines worked, having used one himself.