SNB & CHF

A deal agreed between EFTA and the South American Mercosur bloc, which includes Argentina, Brazil, Uruguay and Paraguay, with a combined population of 260 million, is close to signing. © Tomas Griger | Dreamstime.com EFTA includes Iceland, Liechtenstein, Norway, and Switzerland. Under the deal, 95% of Switzerland’s CHF 3.6 million annual exports to the bloc would be tarif free. The deal is important because the EU recently agreed a similar Mercosur deal, so this deal...

USD/CHF takes the bids near 38.2% Fibonacci retracement of April-August downpour. 200-day EMA, four-month-old falling trend-line acts as key upside resistance. Despite breaking 50-day exponential moving average (EMA), USD/CHF remains below key resistance confluence as it takes rounds to 0.9880 during Friday’s Asian session. The pair needs to provide a daily closing beyond 0.9890/95 region including 100-day EMA and four-month-old descending trend-line in order...

Having destroyed discipline, central banks have no way out of the corner they’ve painted us into. It was such a wonderful fantasy: just give a handful of bankers, financiers and corporations trillions of dollars at near-zero rates of interest, and this flood of credit and cash into the apex of the wealth-power pyramid would magically generate a new round of investments in productivity-improving infrastructure and equipment, which would trickle down to the masses in...

Swiss Franc The Euro has risen by 0.14% to 1.0887 EUR/CHF and USD/CHF, August 29(see more posts on EUR/CHF and USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The capital markets are calm today, though there does seem to be some optimism creeping back into the market. The Chinese yuan strengthened, snapping a ten-day slide and Italian bank shares index has risen by more than 1% for the fourth consecutive session. The safe-haven yen and...

SNB jawboning CHF lower as concerns mount over global growth fears and a flight to safety. EUR/CHF is already trading close to the lows of the year. The Swiss National Bank’s Andréa M Maechler, Member of the Governing Board, has crossed the wires saying that ‘any intervention’ requires an analysis of cost/benefits – plenty of jawboning going on here. Key comments: Negative rates are working, still, have plenty of room for fx intervention. The attractiveness of CHF...

More from SNB Maechler Right now is still plenty of room for forex intervention as to negative rates are working, SNB’s Maechler says “absolutely” Looking at the EURCHF, the pair is trading near the lowest levels since June 2017. The lows this month tested the lows from back then. The test has stalled the fall. EUR/CHF, Daily - Jan 2017 - August 2019(see more posts on EUR/CHF, ) - Click to enlarge Drilling to the 4 hour chart below, the price of the EURCHF...

The luxury goods aisle You might think twice before overcooking a load of steak, chops and sausages on the barbecue: meat costs 2.3 times more in Switzerland than the European Union average. The priciest EU country for meat, Austria, is 1.46 times the average. The Swiss also dig deeper into their pockets than other European residents for other foods, but not as noticeably as with meat, according to latest figuresexternal link from the European Statistical Office,...

USD/CHF again confronts 50-DMA while seeking a downward resistance-line since August 01. 23.6% of Fibonacci retracement can offer immediate support. Swiss ZEW Survey – Expectations in the spotlight. Sustained trading beyond 23.6% Fibonacci retracement of April-August declines enables USD/CHF to near the 50-day simple moving average (DMA) while taking the bids to 0.9820 during Wednesday’s Asian session. With the 12-bar moving average convergence and divergence...

After trading overnight in Asia, Japan’s government bond market is within a hair’s breadth of setting new record lows. The 10-year JGB is within a basis point and a fraction of one while the 5-year JGB has only 2 bps to reach. It otherwise seems at odds with the mainstream narrative at least where Japan’s economy is concerned. Japan JGB, Jan 2014 - Jul 2019 - Click to enlarge Record lows in Germany, those seem to make sense. By every account, the German...

The USD/CHF pair struggled to sustain above 61.8% Fibo. level of the 0.9879-0.9714 recent slump and seems to have stalled this week’s recovery move from the 0.9700 neighbourhood. The intraday downtick remained cushioned near the 0.9800 handle, which coincides with 100/200-hour SMA confluence region and should act as a key pivotal point for intraday traders. Meanwhile, neutral technical indicators on hourly/daily charts haven’t been supportive of any firm near-term...