Post Tagged with: "Switzerland"
There are five key events for investors this week
The first is the size of the ECB bond purchases. Second, the Franco-German summit tomorrow attracts attention. Third, the market continues to pare long Swiss franc positions with the local press suggesting the SNB and government may take new measures. Fourth, the minutes from the BOE’s MPC meeting form earlier this month will be released on Wednesday. Fifth, of this week’s slew of US economic data, the CPI may be the most important
Three Thoughts for Friday
The past two weeks have seen large disruptions in the global capital markets and various policy responses. Market participants are having a difficult time getting a handle on these developments. There are three things investors should consider before the weekend: 1) German-French meeting next week is suggestive of a new initiative, 2) FOMC decision to keep rates low for 2 years may be tantamount to a type of QE and 3) while a peg of the Swiss franc seems to be a non-starter, officials have succeeded in breaking the powerful one-way momentum
SNB takes action against strong CHF
US growth concerns and downgrade risk remain in play after budget deal. Euro zone periphery remains under pressure as ECB meets Thursday. SNB takes action against strong CHF; spike in EUR/CHF offers good entry point to go long
Swiss Franc to Parity with the Euro – What are the Odds?
It is difficult for companies to cope with the competitive implications of the persistent strength of the Swiss franc. By the OECD calculations, the Swiss franc is the most over-valued currency in its universe near 45% over -valued against the dollar and 37.5% over-valued against the euro. The more simple Big Mac calculations, put the over-valuation against the US dollar at almost 115% and 63% over-valued against the euro
How to Think about Currency Intervention Risks
Officials from Japan and Switzerland have stepped up their rhetoric protesting the price action that has propelled their respective currencies sharply higher. Contrary to market anxiety the risk of intervention remains low and lower for the SNB than the
Uncertainty Drives Yen and Swiss Franc Higher
BBH CurrencyView North American Update US dollar mostly weaker versus majors USD/JPY reaches record low as uncertainty remains elevated; G7 to discuss Swiss franc stronger on safe haven bids; SNB remains on hold The dollar declined against most currencies today. The yen is 1.5% stronger trading around the 78.50 level after a very volatile session,
UBS Faces LIBOR Manipulation Probe
By Warren Mosler As previously discussed, the US should outlaw the use of libor by its banking system. It makes no sense to allow US dollar rate setting for our banks to be set overseas by the BBA. Setting our banking system’s dollar rates is the Fed’s responsibility. And, to further make the point, note
Japan’s Nuclear Accident is Impacting European Politics
By Marc Chandler The Japanese nuclear accident has implications for Europe. The EU wants to have stress tests on members nuclear plants. The tests are not mandatory, but may be difficult to refuse. Switzerland has halted its nuclear program, according to reports. Perhaps the most interesting response is in Germany. Chancellor Merkel has been an
Indian banks issuing bonds in Swiss Francs, Really…?
by Marc Chandler A number of Indian banks have begun issuing Swiss franc denominated bonds, ostensibly to raise cheap funds and meet the demand in Europe for emerging market debt. Reports suggest that this is the first of such issues in almost a quarter of a century. While Indian banks seem well capitalized presently, the
EUR/CHF Continues To Make Historic Lows On Euro Zone Tensions
from the BBH Currency Strategy Team The euro is slightly firmer today vs. the dollar today, but continues to make new historic lows vs. Swiss franc just below 1.25, suggesting that euro zone tensions remain strong. EM currencies continue to firm, suggesting a bit of decoupling from the euro zone crisis. However, trading ranges are
Outlook for Swiss National Bank
by Marc Chandler The Swiss National Bank meets Thursday. A change in its monetary stance is not likely for several months at least. However, the SNB will provide new GDP and inflation forecasts that investors may find helpful. The Swiss government provided new forecasts today, ahead of the SNB. Growth this year is put at
Chart of the Day: The World’s Top 50 Banks (bubble chart version)
I have written a few posts showing you the ranking for the big banks globally, with a special emphasis on Europe because of systemic risk. But here’s a great bubble chart that gives you a visual on the relative size of the big banks globally. (Hat tip Barry Ritholtz). Of the large countries on this