SNB & CHF

The prices of the metals moved mostly sideways this week. That is, until Friday. Then foom! (Foom is the sound of a rocket taking off.) From 6 to 10am (Arizona time, i.e. 8 to 12 NY time) the price of gold rose from $1,061 to $1,087. Not surprisingly, the silver price rose a greater percentage, from $14.14 to $14.59. The catalyst seems to be the Bureau of Labor Statics jobs report. There were a few more jobs created than expected, which means the economy is doing well and/or the Fed is...

Last week lived up to the hype. It was indeed a momentous week. China joined the SDR, with a weight that puts it in third place behind the dollar and euro.  The ECB did ease policy. It delivered a 10 bp cut in the deposit rate (now -30 bp), extended its asset purchase program for six months (to March 2017), broadened the range of assets that can be bought to include regional bonds, and declared intentions to reinvest maturing proceeds. The US employment data removed what was perceived as...

1.  Given the large moves in prices shortly after the CFTC reporting period ended on 1 December renders the latest Commitment of Traders report more dated than is usually the case. 2.  The Thanksgiving holiday that closed US markets reduced participation in the currency futures.  Of the 16 gross positions of the eight currency futures we track, none had a significant adjustment (more than 10k contracts). The 9.8k contract increase of speculative gross shorts euro futures (to 261.6k) was...

The market's disappointment with the ECB unleashed pent-up corrective forces in the foreign exchange market.   This leg up in the dollar began in mid-October.  Through the day before the ECB, the euro was the weakest of the major currencies, losing 7.5% against the dollar.  The yen and sterling shed a little less than half as much.  The Australian dollar was the only one of the majors to have gained against the dollar.  And even then, its 0.12% appreciation had only been achieved here in...

For prisoners books have a therapeutic effect and lets them forget everything around them for a while. (SRF/swissinfo.ch) --- swissinfo.ch is the international branch of the Swiss Broadcasting Corporation (SBC). Its role is to report on Switzerland and to provide a Swiss perspective on international events. For more articles, interviews and videos visit swissinfo.ch or subscribe to our YouTube channel: Website: http://www.swissinfo.ch Channel: http://www.youtube.com/swissinfovideos...

(from my colleague Ilan Solot) 1) The Chinese yuan will be in the SDR.  2) Brazil had one of the most important weeks of the year, and possibly of its history.  3) Russia enacted sanctions against Turkey, while Turkey got a deal from the EU.  4) Moody’s raised Russia’s credit-rating outlook to stable from negative.  In the EM equity space, China (+2.6%), Taiwan (0.0%), and Israel (+0.0%) outperformed over the last week, while Poland (-5.4%), South Africa (-4.6%), and Chile (-3.3%) have...

After the ECB's disappointment yesterday market nerves were shattered, but the largely as expected US jobs data may help the focus return to the underlying fundamental fact.  The ECB just eased policy.  Not as much as the market expected, and that speaks to market positioning, but it did ease.  And the 211k increase in November jobs, with the October series being revised up 27k to 298k,  Fed officials looking for more improvement in the labor market got it.   The unemployment rate was...

How many seats are there in the Swiss cabinet? The answer is seven. But how does Switzerland do the math to reach that figure? Is it 2+2+2+1, or 3+2+2? And why does it matter? (Michele Andina, swissinfo.ch) When modern Switzerland was founded in 1848, the Swiss cabinet consisted entirely of members from one party. A second party wasn’t represented in government until 1891. It would take another 50 years before another two were given seats. In 1959, these four largest parties agreed that...

Letterbox companies are one of the tax avoidance strategies used by some businesses. International organisations would like to see them banned. While the trend may not last for long, in Switzerland they are still setting records. (SRF/swissinfo.ch) The term letterbox companies, also known as domiciled companies, refers to businesses that establish their domicile in a tax friendly country with the aid of only a mailing address, even though the bulk of their commercial activities are...

The city of Lucerne is making war on litter - even trash dumped in the lake. (SRF/swissinfo.ch) --- swissinfo.ch is the international branch of the Swiss Broadcasting Corporation (SBC). Its role is to report on Switzerland and to provide a Swiss perspective on international events. For more articles, interviews and videos visit swissinfo.ch or subscribe to our YouTube channel: Website: http://www.swissinfo.ch Channel: http://www.youtube.com/swissinfovideos Subscribe:...