Swiss Franc

Tyler Durden's picture

SNB Warning Gold Initiative "Fatal Error Of Judgment" Sparks EURCHF Peg Test





Having bounced modestly yesterday, EURCHF is testing new lows post its peg (at 1.2020 vs 1.20 peg) as the reality of the referendum on the "Save Our Swiss Gold" initiative starts to get priced in. The Swiss National Bank has decided to unleash some propaganda, as WSJ reports, Thomas Jordan, president of the Swiss National Bank, warned adoption of the so-called 'Save Our Swiss Gold' initiative would be a "fatal error of judgment." With the vote looming on Nov 30th, Jordan explains that maintaining stable prices would be harder to achieve if the call for gold repatriation and increased reserves is approved. The M.A.D. rhetoric has begun as not just stability but jobs are at stake, according to Jordan.

 
Tyler Durden's picture

Yen Plunges To Fresh 7 Year Lows On New Reuters "Leak"





With the bond market closed today due to Veteran's Day and the correlation and momentum ignition algos about to go berserk without any parental supervision, it was only a matter of time before some "stray" headline sent first the carry pair of choice, i.e., the USDJPY, and subsequently its derivative, the Emini, into the stratosphere. And sure enough, just before 3am Eastern, it was once again Reuters' turn to leak, only this time not about the ECB but Japan, as usual citing an unnamed "government official close to Abe's office", that Prime Minister Shinzo Abe was likely to delay a planned sales tax increase.

  • JAPAN MORE LIKELY TO DELAY SALES TAX INCREASE, REUTERS REPORTS

Which of course is a repeat of what Reuters said 2 days ago but since it came on the weekend, the momentum ignition algos didn't notice. The result was an instant surge in the USDJPY, which shortly thereafter touched on 116.00 the highest level in 7 years, and is up now 200 pips since yesterday as the obliteration of Japan's economy proceeds, in turn pushing European stocks, and shortly, the S&P, higher

 
Tyler Durden's picture

EURCHF Hits 2-Year Low As Swiss Gold Referendum Looms





EURCHF is rapidly falling towards its 1.20 peg level - not seen since September 2012 (when the SNB described the "massive overvaluation of the Swiss franc poses an acute threat to the Swiss economy and carries the risk of a deflationary development.") It appears the CHF buying pressure is based on traders betting on the Swiss Gold Initiative (SGI) referendum on Nov 30th - if it were to pass, the SNB would be forced to choose between buying gold or giving up on the peg (and allowing even more "massive overvaluation" of the swissy). For now, it seems EURCHF is the best indicator of SGI risk as precious metals remain unimpressed by the potential demand. Of course, as ForexLive notes one trader's comments, "even if the gold vote goes against them they can still hit the print button to infinity," to defend the peg; though that may just viciously impact the cost of the physical gold they would be forced to buy.

 
Marc To Market's picture

Swiss May not be Able to "Save Our Gold"





Swiss referendum is unlikely to be enacted into law, and if it is, there are several measures the SNB can do to limit its impact.  Expect the SNB to defend the euro floor/franc cap. 

 
Tyler Durden's picture

Where Is Swiss Gold? – Location, Location, Location





With the Swiss gold stored at the Bank of Canada, now having been transferred out of the Bank of Canada’s Ottawa vault to an unknown location, the Swiss public would be wise to question the SNB on this move. The Swiss gold stored at the Bank of England in London seemingly being ‘actively managed’ one of the world’s largest centres for unallocated gold trading, the Swiss public would also be wise to enquire on this issue. And with significant historical quantities of Swiss gold that were stored with the US Federal Reserve Bank in New York no longer there after the SNB seemingly brought their US vaulted gold holdings to zero, the Swiss public need to question why these particular holdings were targeted for sales from 2000-2005 and not domestically held gold.

 
GoldCore's picture

U.S. Mint Gold Coin Sales Near 60,000 - "Islamic State, Ebola, Putin, Ukraine" and Swiss Gold Initiative





Smart money is willing to pay a small premium to own segregated and allocated coins and bars rather than have the exposure of an ETF or digital gold platform ... Prudent diversification into physical coins and bars will again reward those who take a long term view.

 
Tyler Durden's picture

Things That Make You Go Hmmm... Like The Swiss Gold Status Quo Showdown





The Swiss establishment has been reliant upon the public’s ignorance, but now they are up against a formidable opponent in Egon von Greyerz. Not only that, but they can clearly see that, as elsewhere around the world, the public is fast becoming disenchanted with the status quo; and that is potentially very dangerous for these people. What is important to understand here is that if the initiative passes it will be part of the Swiss constitution IMMEDIATELY - as some are suggesting. This means that the government and parliament cannot touch it. Only another referendum can change it. This is proper democracy for you. The closer we get to the vote on November 30, the bigger this story is going to become, and the bigger it becomes, the higher the chance that the yes vote wins. Should that happen, it will undoubtedly set off alarm bells throughout the gold market, as yet more physical gold will need to be repatriated and another sizeable, price-insensitive buyer will enter the marketplace.

 
Tyler Durden's picture

Europe Demands Banks Hand Over Their Lunch Money Following Swiss Franc Libor Rigging





...And don't do it again! Having confirmed that RBS, UBS, JPMorgan,,and Credit Suisse operated a cartell to manipulate bid-ask spreads of Swiss Franc libor, the European Commission has unleashed unmerciless vengeance on these law-breaking institutions: JPMorgan fined EUR 72.2 Million, UBS fined EUR 12.7 Million, Credit Suisse fined EUR 9.17 Million, & RBS Nothing (for whistle-blowing).  The commission found that these four entities 'influenced' interest rate derivatives prices between March 2008 and July 2009 - probably the most volatile and price-sensitive period of American financial history.. and they get fined "an hour's pay?" Nothing ever changes...

 
GoldCore's picture

“Save Our Swiss Gold ” - Game Changer For Gold?





We believe that the “Save Our Swiss Gold” campaign has the potential to be a game changer in the gold market - both in terms of the ramifications for the current global monetary system and in terms of higher gold prices. 

There has been a lack of coverage of this important story and there is therefore a lack of awareness about the possible implications for the gold market. Thus, in the weeks prior to the referendum on November 30th, we are going to analyse the referendum, the important context to the referendum and the ramifications of a yes or a no vote.

 
Marc To Market's picture

What is the US Position about the Strength of the Dollar?





While some are focused on the demise of the dollar, the fact is that it has been appreciating and this is causing some confusion.  See if this helps clarify what is happening. 

 
Marc To Market's picture

Is the Dollar Correction Over, or Just the First Leg?





The may be secret agreements and a grand conspiracy to manipulate the capital markets and commodities, but they are still largely understandable through rational analysis.  Not being privy to such secret deals, here is one man's view of the near-term technical outlook for the foreign exchange market, bond, commodities and stocks.  

 
Marc To Market's picture

Dollar Bulls Ahead





Yes the US does not practice laissez faire capitalism.  It never did.  It manipulates sets intersest rates.  The fx market is still understandable and the dollar is moving higher.

 
GoldCore's picture

Scotland Says "No" - Pound Remains Vulnerable To Currency Crisis





Given the scale of indebtedness in the UK and still very high current account deficit, the pound remains vulnerable to a currency crisis. George Soros and others may still be sizing up another opportunity to break the Bank of England. Another run on the pound has been postponed ... for now ...

 
smartknowledgeu's picture

Do NOT Let the "Strong" Dollar Illusion Lead Your Wealth Preservation Strategies Astray





Is the US dollar really strong now? We explain why your measuring stick can massively distort your perception away from the reality of facts and truth.

 
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