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Swissie Rises To New Record, EURCHF Trades Below 1.37, Swiss National Bank Still MIA
Update: EURCHF stops taken out, as pair drops to fresh intraday low of 1.3683.
As the CHF hits new record highs, the SNB's Hildebrand must be scrambling with both hands tied. Instead, he is trying to deflect attention by pointing out the glaringly ridiculous, i.e., that "stress tests will restore market confidence." The man sure has his Geithner talking points down. Oddly enough, there was not one mention of what everyone was hoping to hear - the fact that the SNB has recently become nothing but a vehicle for currency manipulation.
From Market News:
The decision by the various EU governments to publish the results of their respective bank stress tests in the latter half of July will help to foster market confidence and assist European banks in their capital-raising efforts, Swiss National Bank Chairman Philipp Hildebrand said on Monday.
"Indeed, one of the reasons investors currently appear to underweight European banking stocks may very well be related to the fact that there is insufficient transparency about bank balance sheet conditions in Europe," Hildebrand said in a speech to be given in Zurich. "Credible stress tests can remedy this problem."
Hildebrand saw the current debt crisis as "multi-layered" and called it "a crisis of market confidence". The reaction in financial markets was "a wake-up call" to countries to put their finances "on a sustainable path", he added.
He also called it an "institutional crisis", which clearly demonstrated that the institutional mechanism to ensure fiscal discipline within the EU was "insufficient".
"The EU authorities and governments of the member states will have no choice but to take decisive steps to address the underlying institutional flaws that led to the current debt crisis in Europe," Hildebrand said.
Turning to the Swiss economy, the SNB chairman reiterated that the risk of deflation in Switzerland has passed, but, should the threat of deflation return, the SNB stands ready to do "whatever it takes" to ensure price stability in the medium and long term.
"Overall, today the outlook for the Swiss economy remains a favourable one," Hildebrand said. However, he also noted the downside risks to economic activity, which have grown due to the recent tensions in financial markets.
"Should these downside risks materialise and, via an appreciation of the Swiss franc, lead to a renewed threat of deflation, the SNB would take all the measures necessary to ensure price stability," Hildebrand said, repeating comments made following the central bank's rate decision last week.
So far no measures, necessary or otherwise have been taken. We will keep you posted as soon as the SNB gets involved once again.
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SNB got margin called :)
They won't be back in the Forex markets for a while...
Those published results will be doctored to the point that it is obvious that it is a farce. If SNB wants to stay weaken vs EUR, they should publish their loses in the FX market for the past month :)
"Credible stress tests can remedy this problem."
I can save them both the money and the time... everything is A O K !
(A ponzi will collapse should the truth be told... so the truth will never be told)
DXY inversely tracking Platinum/NASDAQ verbatim.
"the SNB stands ready to do "whatever it takes" to ensure price stability in the medium and long term."
Any questions???
i hope gold will still gain in value in chf
you heard about the greek banks passing stress test easily right..what a joke this is..
Isn't that their goal? To make currencies the only trade left? That way they can be the bankerz in the big Monopoly game.
"Hildebrand said in a speech to be given in Zurich".... how does one say something in a speech that has yet to occur?
Prepared statement handouts to press and attendees are very common. The age of on-the-spot speeches are gone for lack of capable and accountable people.
Euro almost back to the 1.22 handle again after the fake pump overnight, get ready for the stock market to flash crash again.
The market is on the ropes. If Platinum/gold/silver break these current support levels, bet your ass.
No as long as gold is able to go down all is well and moving. It's when gold stops going down that it's completely frozen. This means you have no real money to pay for something (gold) so they start taking equities. Next crash will be slight dip on gold falled by meteoric rise followed by complete dump of the markets.
The market follows gold, not vice versa.
Long at 7 even, myself.
Oops. A double entry. This is me double hitting this. Why? Because ZH is overtaxing their servers and data is slow. Good news. Pain in the ass....
By my calculation the SNB loses CHF1B with each big figure loss on the Eur/CHF cross. Put it differently, each one BP drop (.0001) results in an $8mm loss. The bid offer spread cost them $16mm. JPM had a recent forecast of 1.25. Should that happen the losses on the Euro reserve position from failed intervention will cost the SNB a total of about CHF 20b.
That aint cheese to this small country.
My Intuit software tells me this market will endure any solvency issues and also it tells me that China's monetary move is NOT a sign of desperation.
sui S W I S S chf, oops!
federer almost F A I L.
1.2315 on EUR and falling, 1.22 handle imminent and the market crashes resume faster without SNB in the way anymore. They had enough, and won't be back to play.
Yes, the SNB has become a vessel for the kurrency boyz.
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