Swiss Franc

SocGen: Beware The Ghost Of 1993

"The comparison with 1993 is worthwhile too - it ended badly for asset markets, after all. Whether the Fed should worry about over-frequent excursions to the zero lower bound, or focus on financial sector stability, the risk is plain – super-easy monetary policy is creating artificially low volatility and driving money into trades and investments that are mispriced as a result."

"Mystery" Central Bank Buyer Revealed, Goes On Q1 Buying Spree

While traders and investors were struck by the perplexing price action in the market in the first few months of the year, where on one hand institutions were dumping stocks at a near-record pace even as the S&P was making fresh all time highs, one central bank was quietly buying everything in sight....

Central Banks Give "All Clear" To BTFD If French Election Upsets Market

"The central bank is ready for any shocks that should materialize [after the French election]... Intervening very quickly is really very easy now given the instruments we have... But as we have seen in similar cases, no need has really been observed. And the reason is that all market participants know that these instruments are there to be used."

Futures Slide As Weak Start To Q2 Continues Amid Global Growth, Political Jitters

Global stocks were pressured by a poor start to the second quarter in the US, where carmakers reported disappointing sales data, slamming auto stocks around the globe. The selling has persisted for a second day, with Asian stocks, S&P futures fall and European shares all partially in the red today after their biggest decline in two weeks.

What Will Trump Do About The Central-Bank Cartel?

Mr. Trump doesn’t seem to be an “internationalist,” seeking to build a new world order by political and military means. If that is so, he will sooner or later have to come to grips with the Fed’s policies - most notably with its liquidity swap agreements.

Here Are The Best Hedges Against A Le Pen Victory

According to BofA, the best ways to hedge increased risks of a potential Eurosceptic win in the upcoming French election is favouring 10y peripheral spread wideners in Spain vs France, longs in 5y5y Germany and 5y Dutch sovereign CDS. In the options space, the banks recommends going long vol with a hybrid 6m10y strangle. In inflation, it likes 5y5y French CPI v HICP widener and a long 30y OATei breakeven vs inflation swap.

Dollar Flash Crashes On Last Trading Day Of 2016

It is perhaps appropriate that in a year everyone finally admitted markets are manipulated by central banks and broken by HFT algos, that on the last trading day of 2016, the dollar flash crashed with for no reason whatsoever.