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Swiss Franc Explodes As Asia Opens, SNB Intervention Bells Ringing Loud
EURCHF has just taken out all stops as it plunged by almost 60 pips in the span of a few minutes as Japan opens.... Which opened about 2% down... Which goes to show just the idiocy levels of our markets - there was nothing incremental from last night's BoJ decision, so the Nikkei should have been dropping then. But instead it decided to trade way higher and only plunge once Made In New York Atari algos told it it was safe to plunge. Either way, set your alarm clocks to around 5 am, which is when the SNB tends to intervene most often, and have those upside EURCHF stops ready, as the pair is wound so tight it is just waiting for the Hildebrand match: the (very temporary) bounce, which will cost the SNB another CHF10 billion will likely send the CHF about 150-200 pips lower, only to retrace all losses imminently. Either way, tomorrow will be a day of fireworks. Also, time to put on all those way out of the money GTC bids.
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Explodes, bitchez
Oh do shut up.
Start your Engines for the Race to da Bottom
+1
ROFLMAO!
Fluid Breathing System optional
http://www.youtube.com/watch?v=2NmU7VKd3VA
Off topic;
where is Marla these days??
Seattle
Lake Tahoe. Golf Tourney this W/E
I don't the Japs are going to be buying much swiss cheese now.
Actually it is the Swiss who got screwed by the Japanese
AND the ECB who gets what they want... they did warn the Japanese of intervention
They are trading swiss cheese for US Treasury notes, which they carry over the Italian border.
Major fault line.
Flashing warnings.
Exposure.
Exposure.
This ain't an asian massage parlor. There is no happy ending.
Hah ha
ROR
Raff out Roud
Is it just me, or are there more (and more dramatic) FX movements lately?
I think that this is a fairly clear sign of strain in the world financial markets.
In the race to the bottom...no one wants to be the strong currency (except maybe China)
The Aussies don't seem to mind...they even tend to brag about their fiscal policy prowess (China's subsidy program). Actually, I think you'll find the AUD crosses to be a good indicator of risk appetite
Wait until their little housing bubble catches up down under. The will want in the race with everyone else.
So, best way to keep the Yen low then is to fuck up the economy so that it doesn’t perform. So Low Yen - Good export position – but no exports or Bad export position – High Yen and no exports cause they’re too expensive. LOL
Since May 2010 the Nikei has fallen and the Yen has risen. Why is this? Why has the Yen ben rising?
Major hedge funds are unwinding carry trade orgy into 10 year treasuries. The dollar is about to fall off a cliff ..
thanks!
Someone please explain this to me.
http://www.bloomberg.com/news/2010-08-30/imf-expands-crisis-prevention-credit-lines-extends-duration-to-two-years.html
Specifically this: "Its flexible credit line, reserved for countries that pre- qualify based on sound fundamentals, will be extended for up to two years and have no set limits. A new credit line with additional policy requirements for economies with “moderate vulnerabilities” also was created, the IMF said in a statement. "
Could it be possible that hyper inflation won't come the The U.S. Federal reserve, but from the IMF? After all there are the article does say that there are no set limits.
Will a hyperinflationary sanario start with U.S. dollary or the S.D.R.?
Who is authorizing this shit?
Maybe Tyler Durden can put this on the front page of zero hedge.
"Its flexible credit line, reserved for countries that pre- qualify based on sound fundamentals, will be extended for up to two years and have no set limits"
If a country has sound fundamentals why would it need an IMF "credit line" with no set limits?
geeezsh
**edit**
Yea, I completely missed that, right over my head. Woosh.
"Come join us, soon we'll be buying up those overextended continents for pennies on the billions."
Got it ;)
Yes, the yen at 1,000/USD would be great for the Japanese economy.
That Weimar export economy rocked in '23!
gold is trading higher. just wait til the federal reserve private banking cartel refuses to allow fort knox to be audited.
http://thehill.com/blogs/blog-briefing-room/news/116341-ron-paul-plans-b...
SNB Intervention Bells Ringing Loud
When asked for a comment, Monsieur. Hildebrand was seen with his fingers in his ears loudly screaming:"LaLaLaLaLaLaLa"...
Whats the bottom line on these moves? Same ole repeat episode? I thought Hildebrand got the heat last time he lost billions on intervention? If I'm not mistaken as ZH pointed out last time around - the Swiss GDP isn't all that grand for this chump to go blow large % portions of it screwing around. Why does Hildebrand think it will be different this time around?
Actually, the real point there is that the Swiss economy and their currency is not big enough to support the USD, EUR and the JPY. There is no way the value of the franc can be multiplied that many times. Talk about fractional reserve banking! This has got to be one of the largest spec-bubbles in 4X history.
Hildebrand was right when he said he was going to punish the shorts. Too bad he didn't say when because my drawdowns are getting rather bothersome.
All I know is that EURCHF is literally off the charts, so there is no real technical analysis one can do except guess about projections of Fibo retraces. This market is the craziest thing I have ever seen in all my born days.
/:
Yep. It's too much drastic for the other dancers elastic. The little economies are going to get crushed in relativity nightmare.
Maybe there was something to that flash-spike in Gold today to $3401
http://www.youtube.com/watch?v=IGKAveMY0kc
If gold actually rocketed to 3400 and you just happened to see it do so, it would probably be a few seconds before the flashes and shockwaves.
A real up move in gold might be a couple 3-5% days in a row
Even if that was just an anomaly in the Yahoo charting system,$3400 seems like such a nice realistic price considering.....
How anyone can feel comfortable in treasuries is beyond me.
got gold
Bruce Krasting nailed this. And I'm happy to be profiting. But my stop keeps going lower. Tight stops indeed.
Welcome to no man's land. This is a new all time low for EURCHF. I will stick my neck out and say that we do not see the SNB until 1.27. Seat belts on. Impacto Inminente.
Is it too late to buy a volvo with 5 star safety rating/
volvo is chinese now. think twice.
It's ok. I'll order the Hunan Swedish meatballs.
Bruce, how effectively and how long do you think the Swiss exporters could have hedged against this? A quick scan of the newspapers shows no mention of the spike, and my impression is that no one is really concerned here except that the SNB had these big losses.
Theoretically, a country a dependent on the lots of free trade from globalization like Switzerland will benefit as much from the high Franc through lowered import costs as it will be hurt by rising export costs. Switzerlands oil costs go down every time the Franc rises against the dollar.
What is happening to the Swiss Franc is what has already happened many times in the last 2 centuries. Think how high the Franc rose against the German Mark and the Austrian Krone in the early 20's. Citizens of the neighboring countries have more faith in the Swiss, their government, and their bank secrecy than they do in those of their own country. There are generations of European families who have secured their wealth from government plunder in Switzerland, and this is one reason why the recent UBS tax affair was a tragedy for an entire world. Here is a great story about a family that sheltered (not just tax-sheltered) its wealth in Switzerland through both world wars:
http://www.escapefromamerica.com/2010/08/swiss-asset-protection-for-priv...
My guess is that the Swiss franc will keep on rising as the EU disintegrates. Interestingly, the Franc is already gone up more than the price of gold against the Euro and the Dollar. I guess all those Johnny Bravo's out there think the Franc is stronger that gold. What fools they are, Switzerland is not the country it used to be.
SNB should pass the buck too.
CHF goes up, Austrian and German banks crumble due to exposure to eastern europe debt in CHF.
Dump yer francs or die.
Tyler perhaps you could relate this forex activity in terms of overall vulnerability per US trade deficits.
In the race to the fiat bottom who is the most exposed? How do you gauge the relative strength and weakness between two floating fiat currencies.
What is the end strategy?
Mark Beck
This isnt the explosion you were looking for.
CHF/HUF. Now that's a puppy worth playing with. The pain in Budapest is surely going exponential today...
Silver is up too.
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