SNB & CHF

Swiss Franc The Euro has fallen by 0.31% at 1.1258 EUR/CHF and USD/CHF, December 14(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.bg - Click to enlarge FX Rates Overview:  A string of disappointing economic is spurring risk-off sentiment today.  Global shares prices are being punished and core bonds are being snapped up.  The US dollar is trading higher against most major and emerging market...

Fresh inflation projections likely to keep the central bank on the path of prudence. The Swiss National Bank (SNB) left its monetary policy unchanged at its quarterly meeting today. The main policy rate was left at a record low (-0.75%) and the central bank reiterated its currency intervention pledge. Importantly, the SNB’s inflation forecasts for 2019 and 2020 were significantly revised down—another argument for the...

Even when labelled properly food labels provide precious little information on what a product might contain. © Tero Vesalainen | Dreamstime.com For example, a piece of farmed salmon will typically be labelled only with its country of origin, containing no information on what the fish has been fed. Contaminated fish feed can significantly push up the level of dioxins found in the fish’s fat. Mad cows disease is another...

If there is one thing Ben Bernanke got right, it was this. In 2009 during the worst of the worst monetary crisis in four generations, the Federal Reserve’s Chairman was asked in front of Congress if we all should be worried about zombies. Senator Bob Corker wasn’t talking about the literal undead, rather a scenario much like Japan where the financial system entered a period of sustained agony – leading to the same in...

Swiss Franc The Euro has fallen by 0.17% at 1.1275 . FX Rates Overview: There is a sense of optimism among investors today that may be tested as the session progresses. News that China may reconsider its “Made in China 2025” initiative as an apparent concession to the US while reports suggest it has bought 1.5-2.0 mln tons of soy is easing trade tension fears. UK Prime Minister May survived a vote of confidence...

Swiss National Bank leaves expansionary monetary policy unchanged The Swiss National Bank (SNB) is maintaining its expansio nary mo netary policy, thereby stabilising price developments and supporting economic activity. Interest on sight deposits at the SNB remains at –0.75% and the target range for the three-month Libor is unchanged at between –1.25% and –0.25%. The SNB will remain active in the foreign exchange...

The Producer Price Index (PPI) or officially named “Producer and Import Price Index” describes the changes in prices for producers and importers. For us it is interesting because it is used in the formula for the Real Effective Exchange Rate. When producers and importers profit on lower price changes when compared to other countries, then the Swiss Franc reduces its overvaluation. The Swiss PPI values of -6% in 2015...

Someone asked recently how many times I had “crossed the pond” to Europe. I really don’t know. Certainly dozens of times. It’s been several times a year for as long as I remember. That makes me an extremely unusual American. Most of us never visit Europe, except maybe for a rare dream vacation. And that’s okay because our own country is wonderful and has a lifetime of sights to see. But it does affect our perspective on...

The enormous setback hadn’t yet been fully appreciated in March 2012 when China’s Premiere Wen Jiabao spoke to and on behalf of the country’s Communist governing State Council. Despite it having been four years since Bear Stearns had grabbed the whole world’s attention (for reasons the whole world wouldn’t fully comprehend, specifically as to why the whole world would need to care about the shadow “dollar” business of...

Swiss Franc The Euro has risen by 0.36% at 1.1279 EUR/CHF and USD/CHF, December 12(see more posts on EUR/CHF and USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The US S&P 500 failed to sustain the early upside momentum, but global equities are moving higher today, and there is some optimism on the trade front. Emerging market equities and currencies are also doing well today. Canada...