SNB & CHF

Daniel Humm – Source: Facebook_chefdanielhumm 24 Heures. A Swiss chef from Aargau came first in this year’s ranking of the world’s 50 best restaurants. Daniel Humm, co-owner of the restaurant Eleven Madison Park, comes from Strengelbach in Switzerland, and earned his first Michelin star at 24. In 2003, he moved to the United States to become a chef at Campton Place in San Francisco. Three years later, he moved to New...

Swiss Franc EUR/CHF - Euro Swiss Franc, April 12(see more posts on EUR/CHF, ) - Click to enlarge FX Rates Markets are calmer today.  The significant movers yesterday have stabilized.  The dollar has been unable to resurface above JPY110, but after plumbing to new lows near JPY109.35 in Asia, the dollar has recovered back levels since in North America late yesterday.   The decline in the US 10-year yield was...

Bundesrepublik Deutscheland Finanzagentur GmbH (German Finance Agency) was created on September 19, 2000, in order to manage the German government’s short run liquidity needs. GFA took over the task after three separate agencies (Federal Ministry of Finance, Federal Securities Administration, and Deutsche Bundesbank) had previously shared responsibility for it. On September 17, 2014, almost exactly fourteen years...

Summary: FOMC minutes increased likelihood that Fed will begin reducing its balance sheet late this year. There does not seem to be a consensus on other issues. The strength of the ADP report contrasts with softness seen in the ISM and PMI non-manufacturing surveys. The FOMC minutes were clear that officials are contemplating beginning address the balance sheet, which is another sign of confidence in the...

Swiss Franc EUR/CHF - Euro Swiss Franc, April 11(see more posts on EUR/CHF, ) - Click to enlarge GBP/CHF The Swiss Franc could be in for a particularly volatile with the recent developments in Syria and now North Korea. Both the Swiss Franc and US dollar generally perform very well in times of global economic and political uncertainty as their status as safe haven currencies becomes apparent once again. The...

It is hard not to notice that the chart above has a lot less red in it than it has in some time. That is true of the month to month data as well as the year over year changes. There has been a widely reported gap between so called soft data – surveys and polls – and the hard data – actual economic activity reports. Bulls say the gap is there because the soft data always leads the hard data. Bears say the soft data...

Summary: Japanese investors bought foreign bonds in the last week of March for the first time in nine weeks. Foreigners bought the most Japanese stocks since last April. The pain trade is for a break of JPY110. Japan’s Ministry of Finance reports portfolio flows on a weekly basis with a week lag. The data just reported covers the last week in March, as the Japanese  fiscal year was drawing to a close. Japanese...

The payroll report disappointed again, though it was deficient in ways other than are commonly described. The monthly change is never a solid indication, good or bad, as the BLS’ statistical processes can only get it down to a 90% confidence interval, and a wide one at that. It means that any particular month by itself specifies very little, except under certain circumstances. This month just happens to be one,...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Input Data Errors Dear Readers, I owe you an apology. I made a mistake. I am writing this letter in the first person, because I made the mistake. Let me explain what happened. I wrote software to calculate the gold basis and co-basis (and of course silver too). The app does not just calculate the near contract. It...

Headlines Week April 10, 2017 We were arguing in the previous months, that the EUR/CHF is trending towards parity. There are three reasons: Continuing SNB interventions Strengthening Swiss local demand, as also visible in the GDP release. Speculators increase their dollar shorts against Euro and reduce them against CHF. The tendency of point 3 had been interrupted when the ECB appeared to be less dovish. FX Last Week:...