SNB & CHF

The euro has declined further against the dollar but should strengthen over next 12 months The euro fell to a 20-month low against the US dollar following the European Central Bank’s (ECB) March policy meeting, given the revised forward guidance that suggests that the interest rate differential is unlikely to provide much upside to the euro in the next few months. That being said, recent euro area PMI surveys tend to...

© Scanrail | Dreamstime.com Mercer’s 2019 livability ranking looks at 231 cities across the globe. Vienna comes top for the tenth year in a row, while Bagdad ranks last. Three Swiss cities are among the global top ten. Zurich is 2nd, Geneva 9th and Basel 10th. Bern, a fourth Swiss city, is not far behind in 14th place. No other Swiss cities were included in the survey so there is no way of knowing where Lausanne...

Swiss Franc The Euro has risen by 0.09% at 1.1354 EUR/CHF and USD/CHF, March 15(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The capital markets are calm ahead of the weekend. Outside of Australia and Thailand, Asia Pacific equities advanced, while European shares are mostly little changed. The regional benchmarks, like the S&P 500 have recouped last week’s...

It is now very close to the best time to buy Swiss Francs with pounds since May 2018. The stronger pound and a reduced global risk appetite has seen the move on the GBP/CHF pairing. This is presenting a much improved opportunity to buy Swiss Francs with pounds. Any client wishing to buy or sell on this pairing might benefit from a quick review with our team to best understand what is next, and the potential outcomes....

The “marketplace” of individuals and entities all seeking to maximize their share of the central-state swag doesn’t make a democracy. A democratic republic is a government in which power flows from citizens to their elected representatives. The American revolutionaries did not make a big distinction between republic and democracy, for in the context of the late 1700s, the dominant political structure was monarchy, and...

The Hong Kong SFC accused UBS of substandard due diligence and failure to address red flags. (Keystone) Swiss bank UBS has been fined HK$375 million (CHF48 million) for irregularities involving three IPOs it had help list on the Hong Kong stock exchange in 2009. Its licence to sponsor IPOs in the city was also suspended for one year. On Thursday, Hong Kong’s Securities and Futures Commission (SFC) announced the measures...

Swiss Franc The Euro has fallen by 0.19% at 1.1346 EUR/CHF and USD/CHF, March 14(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The Brexit drama continues to play out, and the Withdrawal Bill that has been twice defeated is ironically not dead yet.  Today’s vote, in fact, is predicated on another “meaningful vote” before seeking an extension. Sterling remains firm...

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...

Following the changes to its forward guidance, we have revised our forecast for ECB policy rates. Last week, the European Central Bank (ECB) announced a new long-term refinancing package for banks (called TLTRO-III) and made clear that interest rates would not be raised this year. While these measures were expected, they have come earlier than we thought. We were also taken aback by the extent of the downside revisions...

The promises cannot be met, and so society decays into warring elites and competing constituencies. There is a grand, majestic tragedy in the inevitable collapse of once-thriving states and empires: it all seemed so permanent at its peak, so godlike in its power, and then slowly but surely, too many grandiose, unrealistic promises were made to too many elites and constituencies, and then as growth decays to stagnation,...