Swiss Franc Surges To New Record Against Dollar, Peripheral Spreads Blow Out As Schizophrenic Market Is In Risk Off Mode

Tyler Durden's picture

The perfect storm in risk off continues, as not only have European peripheral spreads once again commenced their trek wider, but FX flight to Swiss safety has resumed with a vengeance, with the USDCHF tumbling to a new all time low just above the 79 handle. The EURCHF is just above lows set a week earlier, following Moody's cutting Greece to Ca from Caa1, with a developing outlook, and the resulting final outcome of which will be a default of some nature. Also weaker are various peripheral spreads with Spanish, Portuguese and Italian Bund spreads and CDS pushing wider this morning. Another notable development is that Austria has decided to skip its August auction supposedly as "funding has been advanced already" although we all know what the real reason is. In Asia, markets closed broadly lower and the USDJPY continues to trade near all time lows, save for the flash crash plunge from March 17. According to Lee Hardman of BOTM-UFJ, "verbal jawboning by Japanese authorities of concerns over  yen strength unlikely to be backed up by actions to weaken  yen." Any attempt likely to be unsuccessful at present, he adds. The bottom line, which incidentally is always cash, and in this case the amount of it held in Greek banks can be seen by the chart below. We fully expect Greek bank deposit to decline by another €5 billion in the most recent period when the data is released.


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Id fight Gandhi's picture

Things are gonna get a lot more pricey for the American slave class

Popo's picture

Agreed.   And gas is going to get pricey along with everything else.   All eyes should be on the price at the pump.

Gas prices are what will bring the US ponzi down... tick tick tick...

Id fight Gandhi's picture

Nearly no one in congress and very few Americans realize the power and damage of monetary policy.

As prices surge they'll all point fingers at the wrong people again and be clueless it's the morons with the printing press and interest rates are ruining the economy, not just here but globally as the dollar is reserve currency.

Dollar used to be 35/oz of gold err tradition 40 years ago, it's over 1600 now. That means the dollar fell 98%

If people had a clue they might care. But football, porno and political bickering is all they care about.

Ted K's picture

I told my grandson I was going to get him Austrian Bonds as a birthday present last Friday. Now what the hell am I supposed to do????

GetZeeGold's picture


Just slip him a gold Eagle.....he'll love it.....shiny!!!


camoes's picture

Give him a basket of $NFLX, $LULU, $OPEN, $GMCR, $LNKD and $P. It will be worth zillions of dollar by the time he get's to college!

Jendrzejczyk's picture

Anyone else seen a chart where silver shot up to $41.57 on open last night?

MarketTruth's picture

In Switzerland they truly know that gold IS money... unlike The Bernak.

Id fight Gandhi's picture

Money needs to have intrinsic value. The gold standard was a hybrid and a decent compromise. The world and the USA was doing fine under it. This fiat shit has been a mess.

You cant take today's paycheck, save it and expect to buy the things you need a year or two from now.

People can wear clothes longer, buy stuff second hand, but food, energy keep going up and wages keep falling.

tim73's picture

"The world and the USA was doing fine under it."

Oh really, half the world was under COMMUNISM! Yes it was fine for USA after WWII until Switzerland started demanding swapping dollars to gold and reserves started to go down drastically. Then all of sudden it was "not OK" for USA.

Gold is not good if an economy grows too quick when compared to access to new gold or vice versa, like in Spain long ago after discovery of New World. Also faking gold is easier nowadays, thanks to more advanced material technologies than 40 years ago. Without access to some pretty expensive measurement gear, average folks would not be able to tell the difference.

Id fight Gandhi's picture

Gold, silver, a finite universally accepted storage of wealth that cannot be manipulated by central banks.

Any monkey can run the presses and devalue the purchasing power of money to fit their failure of budgetary needs at the expense of the working class to work and save.

Our system now is no different than paying someone today, taxing them, then going back and stealing the rest from devaluation. What do they do to survive? Go deeply into debt for their lives.

It just doesn't work.

THE DORK OF CORK's picture

Vietnam & peak domestic oil production brought the Bretton Woods system down although it could have been saved if domestic austerity was a poltical winner.

It was not - The American Graffitti culture was too ingrained into the collective psychosis.

Urban Redneck's picture

Perhaps the fools in Washington DC should realize that they haven't even paid off the principal they borrowed to fund the war in VIETNAM yet, much less every other adventure since then.

overmedicatedundersexed's picture

we fixate on gold value in Fort Knox (if any) while the USA sits on on the SPR millions of barrels of black gold going up in value daily..sell it all and we got Billions of FRNs to pay down debt..just saying..

PaperWillBurn's picture

I better buy that gold Rolex soon!

GCT's picture

Paper they will cut your hand off to take that dam rolex.  Buy physical and stash it.

karmete's picture

Well done! Thank you very much for professional templates and community edition sesli siteler sesli sohbet

chinawholesaler's picture

Wholesale Watch
Wholesale Frisbee

Wholesale Clap Hands
CD Holde
Wholesale Whistle

Wholesale Towel
Wholesale Belt
Coca Cola Gifts

Wholesale Mouse
Wholesale Knife
Wholesale Mouse

Wholesale Massager
Lighting Products
Wholesale Magnifier

Wholesale Mp3
Wholesale TelePhone
Wholesale USB Products

Wholesale Sticker
Wholesale Dartboard
Promotional Items

Electrical Gifts
Safety Suppliers
Men Beauty Care

Safety Products
Wholesale Glove
China Wholesale

Giveaway Material
Sport Support Products
Wholesale Helmet

Wholesale Speakers
Wholesale Pedometer
Wholesale T-Shirts

Coca Cola Gifts
Wholesale Glove
Wholesale Scissors

Tape Measure
Wholesale Magnifier
Wholesale Camera

Wholesale Mirror
Wholesale Compressed Products
Audio Video Equipment

Wholesale Mug
Industrial Supplies
Pen Holder

Wholesale Scarf