SNB & CHF

USD/CHF prints another 2020 high and retraces down in the New York session. Bears are challenging the 0.9830 level.  USD/CHF daily chart After hitting yet again a new 2020 high, USD/CHF is easing from session highs. The spot is trading below the 200-day simple moving averages suggesting an overall bearish momentum in the long term. USD/CHF daily chart(see more posts on USD/CHF, ) - Click to enlarge USD/CHF four-hour chart Dollar/Swiss is trading in a rising...

. The Swiss government wants to set aside CHF11.25 billion ($11.43 billion) in development aid for the 2021-2024 period. The governing Federal Council adopted its Strategy for International Cooperation on Wednesday after opening it up for public consultation. It will still have to be approved by parliament. The amount proposed is CHF140 million more than the current aid budget and will cost Swiss taxpayers less than one Swiss franc (CHF0.80) per inhabitant per day....

One of the most common debates that has occurred in the United States for the past six decades is the discussion of the poverty rate. As the narrative goes, the US has an unusually high poverty rate compared to equivalent nations in the OECD (Organisation for Economic Co-operation and Development). Although it’s true that the measure of poverty is flawed, especially when compared cross-nationally, this piece addresses the reasons why the poverty rate in the US in...

Swiss Franc The Euro has fallen by 0.08% to 1.0619 EUR/CHF and USD/CHF, February 20(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The increase of Covid-19 cases in South Korea and Japan, coupled with China’s changing reverting back to its previous methodology of calculation, dropping clinically-diagnosed cases have again weakened risk appetites and sent the dollar broadly higher. Fears of a Japanese recession...

We do not like Purchasing Power or Real Effective Exchange Rate (REER) as measurement for currencies. For us, the trade balance decides if a currency is overvalued. Only the trade balance can express productivity gains, while the REER assumes constant productivity in comparison to trade partners. Who has read Michael Pettis, knows that a rising trade surplus may also be caused by a higher savings rate while the trade partners decided to spend more. This is partially...

(KEYSTONE/GAETAN BALLY) The Swiss Federal Court has ruled that cannabis – the legal, low-THC version – should not be subject to the tobacco tax. Responding to the complaints of three cannabis production companies, the court found that there was no legal basis for a 25% tobacco tax on the sales price of cannabis. The tax will be dropped immediately. In Switzerland, cannabis with a tetrahydrocannabinol (THC) content of less than 1% is legal. It is sold as oil, tea or...

Swiss Franc The Euro has risen by 0.08% to 1.0617 EUR/CHF and USD/CHF, February 19(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: After shunning risk yesterday, investors re-entered the fray today, and the animal spirits returned. The MSCI Asia Pacific Index snapped a four-day slide, and China’s markets were among the few losers in the region today. Europe’s Dow Jones Stoxx 600 recovered yesterday’s losses in...

USD/CHF registers three-week winning streak, breaks above 38.2% Fibonacci retracement for the first time in a year. 61.8% Fibonacci retracement, September 2018 low act as the key supports. USD/CHF takes the bids to 0.9835 amid the pre-European session on Wednesday. In doing so, the pair crosses 38.2% Fibonacci retracement of its broad run-up between February 2018 and April 2019. Also supporting the pair’s upside is a first in nine weeks bullish MACD signal. Based on...

. Euro-area growth has hit a slow patch. Following promising signs of having turned a corner, economic data released last week revealed that Q4 growth in the euro area reached its slowest pace since the European debt crisis. German growth was flat for Q4, in line with expectations. As far as Germany’s outlook goes, dark clouds have taken the form of an uncertain political environment and China’s recent weakness. We expect German politics to be even more...

Car sales are still rising in Switzerland.  (Keystone) New cars imported into Switzerland have not been respecting the prescribed norms on CO2 emissions, with emission levels actually rising in 2017 and 2018, says a report published on Tuesday. Nearly half of importers failed to meet compulsory targets in 2018, according to the Federal Office of the Environment’s report for parliament. Total sanctions ordered against them came to CHF31.7 million ($32.3 million) in...