SNB & CHF

$8 Trillion Transfer RHINEBECK, New York – It is a beautiful autumnal day here in upstate New York. The trees are red, brown, and yellow. Squirrels hop across the lawn, collecting their nuts. Unseasonably warm the last few days, rain showers are moving in from across the Hudson, driven by a chilly wind. But today, we talk about money. After all, that’s our beat here at the Diary. Money. Money. Money. We’ve seen how...

Marc Chandler - Click to enlarge I was on Bloomberg TV this morning to weigh in on the dollar’s rally. The US Dollar Index is flirting with the 100 area that has blocked side since last year. In my work, after a big run-up form around 80 in mid 2014, the Dollar Index has been consolidating. I have long anticipated a spring board for another leg up. The fundamental logic was the divergence in monetary policy and the...

See the introduction and the video for the terms gold basis, co-basis, backwardation and contango. Big News The big news this week is that Donald Trump was elected to be the next president of the United States. Whether due to his comments about restructuring the government debt, tariffs on imported goods, or other economic concerns, many expected news of his election to push up the price of gold. They were wrong....

Comment on Swiss Franc by George Dorgan My articles About meMy booksFollow on:TwitterFacebookGoogle +YoutubeSeeking AlphaCFA SocietyLinkedINEconomicBlogs Swiss Franc EUR/CHF - Euro Swiss Franc, November 14(see more posts on EUR/CHF, ). - Click to enlarge FX Rates The US dollar rally that moved into a higher gear in the second half of last week has begun the new week with a bang. It is up against nearly...

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...

US Citizens Giving the Finger to Globalist Statist Elites – Big Time Back in late August we posted something about Mr. Trump’s chances probably being a lot better than was generally assumed (see: US Presidential Election – How Reliable are the Polls?). You know what the say about a headline that ends in a question mark; most often, the answer to the question is “No”. And so it was in this case – the polls were not...

If there’s one country with reason to resent the rise of populist movements, it’s Switzerland. Twenty-two months after it abandoned its 1.20-per-euro exchange-rate cap, the Swiss National Bank still finds the franc in focus every time there’s a major event that threatens to upset markets. Donald Trump’s ascendancy to the White House pushed the currency to the strongest level since the wake of June’s Brexit vote, and...

(Originally published in December 2015) In December 2015, the ECB announced a further „easing“ of monetary policy. In order to stimulate the economy in the euro zone you will take the following measures: First, the ECB will cut its deposit rate from -0.2 per cent to -0.3 per cent. Second, the rate for main refinancing operations will remain unchanged at 0.05 per cent. Third, the ECB will expand its stimulus program by...

Introduction by George Dorgan My articles About meMy booksFollow on:TwitterFacebookGoogle +YoutubeSeeking AlphaCFA SocietyLinkedINEconomicBlogs Summary: US election results accelerated forces that were already present. Interest rates have appeared to bottom, fiscal stimulus in Canada and Japan already evident, and divergence between US and EMU/Japan monetary policy. US stimuli may reach when the economy...

Swiss Franc Currency Index and the Trump Reflation Trade The Swiss Franc Index rose sharply, shortly after the U.S. elections. But then the Trump reflation trade came. Trump may fulfills the wet dreams of many economists. With tax cuts he might extend the U.S. fiscal deficit up to 10% per year. This resulted in: Gains on U.S. stocks and other dollar-denominated assets. In particular by yield-seeking Japanese pension...