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The Swiss Franc Is Plunging After SNB Comments
Following comments from the Swiss National Bank, reducing the group of sight deposit account holders that are exempt from negative interest rates, has sent Swissy tumbling...
The rush out of swiss francs reignites
As Bloomberg reports,
Swiss National Bank says its reduced the group of sight deposit account holders that are exempt from negative rates.
Says negative rates to apply to sight deposit accounts held at SNB by enterprises associated with federal govt, including pension fund PUBLICA.
Accounts will have minimum exemption threshold of CHF10m, to which negative interest does not apply.
Accounts of cantons of Geneva and Zurich, City of Zurich to be wound up.
Account of SNB pension fund will also be subject to negative rates.
Only sight deposit accounts to be exempt from negative interest will be those of central Federal Administration and the compensation funds for old age and survivors’ insurance, disability insurance and fund for loss of earned income.
* * *
One wonders if The SNB has licensed Sarao's "spoofing" algo... EURCHF weakness (+100pips to 1.036) seems to imply the SNB's hope is that Sight Deposits are reduced (as every central bank hopes... spend don't save)...
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Jesus fkn christ if the swiss is plunging then that is a USD/CHF chart. Stop wasting my time.
it "plunged" a whole penny. lulz
luv the sensational zh headlines
Yes, fully agree. Now the move of January was a 'plunge'. Getting very annoying to read mvoes of a cent-2 cents here.
Exactly. Always cracks me up how folks make shit up with respect to currency pairs.
Crap vs crap.
It's all just paper to me.
Bingo. People are fucking idiots, devolution...
tick tock motherfuckers....
The chart shows the number of Swiss francs to the USD is increasing. Doesn't that indicate the value of the Swiss franc is decreasing?
no, people selling dollars, dollar losing value.
The Swiss are only interested in the EUR/CHF rate. The USD/CHF is a by-product as commerce with the US is small in comparison to Swiss Eu trade.
It's a ratio, so it shows stronger Franc relative to the Dollar. It says nothing about other currencies, or assets (they could both be weakening relative to everything else out there, but the Dollar would be weakening faster). It really can be misleading to draw conclusions from just one chart. You need to measure the overall strength (or conversely weakness) of both.
That is why there are indexes and why economists create "baskets" of goods when looking at price movements, with the basket being a sample. The same would apply to currencies.
My advice is to not put too much stock in these types of articles. ZH reports some things in a decent way, but not market moves. Every week is a "crash" or a "break out", obviously this is not the case often. Their causality is all screwy too: every sharp incline in a market, or decline is blamed on algorithms. You'd have to look at the nanosecond scale to evidence this. It could just as easily be a choppy market with shorts getting squeezed, or a sell-off.
In times of thin liquidity, for instance, banks (with volumes of proprietary data, including where stop-losses, or buy signals are clustered) will nudge the market a little to fire said executions and pick up commission. Not necessarily a bunch of algorithms firing randomly to make the market look good for Zerohedge to post about.
Thanks much for the info, but I still am confused. FX trading............it's not for everybody.
I freelance over th? internet and earn about 80-85$ an hour. I was without a job for 7 months but last month my paycheck with big fat bonus was $15000 just working on my computer from my home for 5-6 hours. Here's what i have been doing... www.globe-report.com
old days: pay you interest and give you a toaster
new days: take your money and no toaster 4 u
new=put u in the toaster.
Toaster not need, after giving them your money you ARE toast
what is the matter with the swiss ... why have become these cheesemakers so important to world finance?
what they HAD was a stable currency and safe haven. now they have neither.
but they aren't an informal member of the EUR team anymore
I mean... it must account for something. no? lol
yeah, i guess ... but also, they are old europe ... who cares, right? all the power nowdays is in the US, or am i missing smt?
Maybe it's just upside down...
According to the data shown, it's actually the denominator that is "plunging" and that would be the dollar.
tick tock motherfuckers....
LOP, how so? Just asking...
US Dollar 98.19 -0.02-0.02%
17:00
Not very good at math I take it? couple of points;
1) when the denominator gets smaller (even a little bit) the fraction gets larger.
2) relative to the CHF in the data shown, it's the dollar that decreased.
3) notice the pluging is in quotes, not really plunging in my book. when the value goes to fucking zero, then I might say something "plunged".
Did I miss something?
In the CHF/USD chart the Numerator ...CHF... is the number on the right side of the chart.
The Denominator...USD... is 1.
But you guys seem smart. And I only glanced at the chart for a split second...so what did I miss?
You missed that individual currencyies in pairs are called
Base / Quote
thus CHF/USD
is Swiss Francs, quoted in USD.
stocks are done the same way, its just that you dont see the second half of the pair, since it is implicit in the market.
AAPL (eg) could be wirtten AAPL/USD and thus it would be 1 apple stock quoted in USD
Gosh!! Thats my third edit on this post!! The chart is indeed wrong. Bloomberg inverted the pair and forgot to invert the data. According to this " chf/usd" the base currency is appreciating which is wrong. The swissie is DEPRECIATING. Why those sons of a gun have to invert the freaking pair???
Well stable is relative in times of QE at least SNB isn't trying to weaken the franc anymore by buying more corporate bonds. Anything to not bloat that balance sheet even more with useless paper.
I figured out that the US dollar is the antichrist..... maybe others are starting to catch on
1 cent.
holy shit!
...............................
wait til the cantons hear this one.
jordan may be looking for a new job.
lmao
These banksters are telling people to buy assets by doing this.
They don't want your money.
When that game is over what's their next scheme?
??? wtf
Those crafty Swiss will make Viktor some big bucks on the slide......ala George Soros
Russian Tycoon Viktor Vekselberg To Have Swiss Board Manage Global Assets
Ok, so if we follow Grossian logic: people were buying negative-yield Swiss bonds, because they anticipated thatb the franc was going to continue to appreciate against other major currencies. Once again the SNB steps in, speculators get their fingers burnt, and the world and its mother should now all Sell Swiss bonds - the opportunity of a lifetime et al....
I guess I don't understand what everyone finds so controversial.
They chose two charts that say the same thing...but are described in reverse terms.
They chose CHF/USD a.k.a...."How many CHF does it take to equal one dollar?"
(The answer is that it takes MORE CHF to equal a dollar. Or CHF is LESS valuable than before.)
They chose EUR/CHF a.k.a. ... "How many EUROS does it take to make a CHF?"
(The answer is that it takes FEWER Euros to make a CHF,meaning the CHF is LESS valuable than before.)
Granted, if they wanted to be all nice and neat, they've have chosen CHF/USD & CHF/EUR OR USD/CHF & EUR/CHF... to keep their denominators aligned.
So...what is the controversy? The two charts say the same thing. The only reason they point different directions is because the authors didn't use a common denominator between the two.
I'm wondering the same thing
Perhaps it's just custom to display the FX graph a certain way to indicate which currency of the pair had the most action that day?
Can anyone chime in lol
btw been reading ZH forever but finally decided to start posting DOWN WITH BANKSTER SCUM
Look here (or see PrettySkulls's post above).
"CHF/USD = 0.96" means it takes 0.96 USD to buy 1 CHF.
When you see "CHF/USD" you should think "CHF priced in USD".
If (per the first chart in the article) a CHF used to cost (was quoted at) 0.951 USD but now costs 0.964 USD, that would mean the CHF gained value relative to the USD.
thank you!
The two charts do not say the same thing at all. The first one is backwards.
E.g., look here:
CHF/USD 1 week: http://www.xe.com/currencycharts/?from=CHF&to=USD&view=1W
EUR/CHF 1 year: http://www.xe.com/currencycharts/?from=EUR&to=CHF&view=1Y
You will find the 2nd linked chart aligns well with the 2nd chart in the ZH article. The 1st linked chart does not align with the 1st chart in the ZH article, because the ZH one is backwards. (Be mindful of the timescales of the two charts.)