SNB & CHF

Summary Fitch upgraded Taiwan by a notch. Thailand has a new king. South Africa’s Finance Minister Gordhan has been summoned to appear in court to face charges. Brazil’s Congress voted to approve a constitutional amendment to freeze government spending in real terms for at least the next 10 years. Brazil’s Petrobras cut fuel prices and introduced a new pricing mechanism. Stock Markets In the EM equity space...

One year ago, when it was still widely accepted conventional wisdom that NIRP would “work” to draw out money from savers who are loathe to collect nothing (or in some cases negative interest) from keeping their deposits at the bank, and would proceed to spend their savings, either boosting the stock market or the economy, we showed research from Bank of America demonstrating that far from promoting dis-saving, those...

Lurid Media Coverage In recent months, more and more of our clients and friends from overseas are asking us whether it is safe to travel to Europe. These fears are understandable, given the media coverage of the tragic events that occurred this year. The press painted a sinister and truly graphic picture of Europe as a war zone, as a target of global terrorism. The attacks in Brussels, the horrors we saw in Nice on...

With the strong ISM non-manufacturing PMI last week, long positions on the dollar are increasing, while speculators increase their euro and Swiss Franc shorts. CHF net shorts increased to 9.4 K positions. That the euro has depreciated against CHF, is possibly caused by real, non-speculative money into CHF, i.e. money in the form of cash and stock purchases. We will get more information tomorrow when the SNB sight...

Swiss Franc Currency Index The Swiss Franc index had once again a bad stance against the dollar index. The CHF index was down 1%. The dollar index, however, improved. Trade-weighted index Swiss Franc, October 15 2016(see more posts on Swiss Franc Index, ). - Click to enlarge Swiss Franc Currency Index (3 years) The Swiss Franc index is the trade-weighted currency performance (see the currency...

Over the next two years, the municipality of Dübendorf, in canton Zurich, will be testing a hydrogen powered street cleaning vehicle. The trial is intended to show the viability of hydrogen power for everyday use. (SRF, swissinfo.ch) --- swissinfo.ch is the international branch of the Swiss Broadcasting Corporation (SBC). Its role is to report on Switzerland and to provide a Swiss perspective on international events. For more articles, interviews and videos visit swissinfo.ch or subscribe...

Since the stock, bond and real estate markets are all correlated, it’s a question with no easy answer. The Everything Bubble Everyone who’s not paid to be in denial knows stocks, bonds and real estate are in bubbles of one sort or another. The Housing Bubble Real estate is either an echo bubble or a bubble that exceeds the previous bubble, depending on how attractive the market is to hot-money investors. S&P /...

via 20 Minutes. Residents of German-speaking Switzerland appear to doing less shopping across the border, something that has also been observed in Geneva. According to the newspaper the Handelszeitung, Swiss cross-border shopping peaked in 2015 and local customs posts have seen a decline in VAT and duty collected since March. At the border in Kreuzlingen, near Lake Constance, VAT and import duty collected was down 10%....

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...

Swiss Franc  EUR/CHF - Euro Swiss Franc, October 14 2016(see more posts on EUR/CHF, ). - Click to enlarge FX Rates The US dollar is firm against most of the major currencies, but within yesterday’s ranges, which seems somewhat fitting amid the light new stream. The high-yielding Australian and New Zealand dollars are resisting the stronger greenback, while on the week the Aussie and the Canadian dollar are the...