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Swiss France Soars For Second Time After Swiss Government Dashes Peg Hopes
As we predicted earlier, following the disappointing announcement out of the SNB overnight, now it is the Swiss government's turn to make it clear that nothing good will happen for USDCHF and EUCHF longs following a 9 sigma move higher in the past week. As a result, the EURCHF promptly took out another 200 pips in the past hour and tumbled as soon as Switzerland's Widmer-Schlumpf said that the Franc is a matter for the SNB, not a matter for politicians, and that it is up to the SNB to decide on the CHF target, throwing the ball of responsibility back in Philipp's court, and making sure that all the CHF pairs retest all time lows in the very near future. Because, just as eurobonds are the last ditch option for the eurozone, so a CHF peg is the last option for the SNB before ongoing pressures in the eurozone push the CHF to parity with the EUR, in the process bankrupting the CHF, and destroying the country's export sector.
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Oh the Swiss France! Where can I buy that? :-)
The new Northern Euro?
so when does the Bank of Canada start printing? Only a matter of time....
www.silvergoldsilver.blogspot.com
Come on...just ONE little letter!
Sweet!
Hmmm... I sold 20% of my position in FXF at 130.50... never hurts to take a profit... but... it could be back at 140 before we know it. Oh well.
Jesus, Widmer Schlumpf doesn´t have a clue about financial markets. She should have said "all options are on the table". But yeah, we have elections coming up this autumn. So fuck the exporters, let´s get reelected.
This doesn't make sense. Yes, maybe she should have used a more threatening language but a) the Swiss electorate wants a weaker Franc because they are aware of the threat to the export industry and b) CHF 2 billion for certain industries to soften the CHF-pain hardly imply a "fuck the exporters" attitude.
2 billion is nothing if exports and/or margins go down 30 %
Import prices are falling too which is good for margins and exports haven't gone back by nearly 30%. Still, I see your point. Do you think a peg would have been the better option though?
No i think we should instal a sovereign wealth fund that invests money from fx interventions abroad.
Additionally we need way better public relations from the SNB and the gov.
Yeah I agree, but I don't think that's politically feasible. Can you imagine the SVP-Plakate? Haha...
Btw. I've been trying to get my hands on that UBS report where they argued for an SWF. Couldn't find it, do you know where to look for it btw? I have access to the costly UBS research platform through work but couldn't find anything..
There is an article in NZZ.
The piece itself is costly. I got a PDF from a friend. I´m not a client of UBS.
Why don't people start their exclamations with "Muhammad" or "Buddha"? No offense, just asking.
Jesus fucking Christ! Lighten up dude!
I´m going to use Benny or Timmah now
"Good Ghandhi! My jubilation knows no bounds!" -- Apu, "The Simpsons"
It's a race to the bottom, and Switzerland is getting left behind.
add on: AND destroying anyone's ability to pay back all those borrowed Francs.
I could only wish we had the SUI problem of a safe currency.
Even the Warren Buffetts and George Soros of the world have to have some cash, and have to leave some place safe to put theirs
Just wondering how the household balance sheets in Hungary, Croatia, Poland etc look like these days. All those CHF-denominated mortgages to buy overvalued houses, ouch... I'm sure the central planners in those countries will fix that too.
On a similar note, where are the CDS of all those Austrian banks that made these loans?
Since you wonder: CHF is expensive but LIBOR is low. The result is only a moderate increase in monthly payments.
Did anyone read this Rolling Stone article
http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-st...
This man is going to need a private security detail.
Who would protect him? CIA..haha
I want the Italians to come back with "I never would be in this sovereign debt crisis if Italy weren't sovereign."
This is too much fun. They've "contemplating" one European government since the death of Charlemagne. What a joke
1.14 - 1.15 offered excellent opportunity for re-establishing short eurchf positions. Expect a retest of the parity lows in the next few weeks maybe a month. Stop above 1.1570.
Market retraced about .38 on panic short covering. Trend down about to continue with a vengence.
Next to being long gold, this short is about as good as it gets from a trading standpoint.
Why can't Switzerland just take those incoming FX dollars and use them to buy up gold on the open market instead to "sterilize" the rise in the currency and if FX traders want to get out of the Swissie, SNB just sells the gold again and buys the foreign currency back and sells...voila...No exporting nation is going to suffer from that...and the pressure on the CHF would be greatly reduced.
today was a slow day for silver to... only 1/3 of the year production got bought in the future markets.
FX Markets are a bad Joke, a rigged Game due to the debased and corrupted Reserve Currency, the US Dollar.
What is the underlying value of the US Dollar ? US $15,000,000,000,000 Dollars of national Debt on Junkbonds.
It is an addiction to Quantitative easing, a US $3 trillion stimulus Bubble addiction that is completely out of control.
This is our "Reserve Currency" of the global Market economy ?
The USD is a farce, It is Insanity, It is monopoly money that should be relegated to Junk status .
Relative to the US Dollar, all currencies are Inflated to ridiculous hights, causing Price Inflation and Instability in the most fragile economies, especially emerging economies . There are 500 million People in the Euro-zone alone.
How much longer will People in Europe and Asia put up with the Reserve Currency devaluation of the US Dollar?
A mix of value Currencies like the Euro and the Swiss Frank should rightfully be the Global Reserve Currency of the global Economy and market-Place.
Ditch the debased and manipulated US - currency from global Reserve Status to Junk, to reflect the real value the corrupted and bankrupted US Dollar has become.
Is it you, WITHLOVE? (From Ihub)???
Soars? How about just a little whipsaw.
Well I can't see it soaring anywhere. I think SNB is doing good job.
Its not a highly valued Franc or a lowly valued Euro which kills industry - its the wild gyrations in the FX market as the blood suckers take more then just a pound of flesh.
The leverage of the FX market must be destroyed - and in a debt based system that can only be through a massive increase in the price of Gold.
I really like your way of expressing the opinions and sharing the information. It is good to move as chance bring new things in life, paves the way for advancement, etc.
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