SNB & CHF

A Litany of Failures It was widely expected that the BoJ would announce something this week after it promised to perform a comprehensive review of its monetary policy. It certainly did deliver a major tweak to its inflationary program, but its implications were seemingly not entirely clear to everybody (probably not even to the BoJ). There were many reasons for the BoJ to review its policies. For one thing, they...

In der gestrigen Ausgabe der NZZ am Sonntag wird Nobelpreisträger Paul Krugman zitiert, wie er den Mindestkurs der SNB und deren Negativzinsen lobt. Die Negativzinsen seien ein „wertvolles Experiment“ meint er und „bedankt“ sich dafür sogar bei der SNB. „Die Schweiz eruiert neues Territorium. Aus akademischer Sicht liebe ich das.“ Die SNB hat sich also zum Versuchskaninchen der internationalen...

In der gestrigen Ausgabe der NZZ am Sonntag wird Nobelpreisträger Paul Krugman zitiert, wie er den Mindestkurs der SNB und deren Negativzinsen lobt. Die Negativzinsen seien ein „wertvolles Experiment“ meint er und „bedankt“ sich dafür sogar bei der SNB. „Die Schweiz eruiert neues Territorium. Aus akademischer Sicht liebe ich das.“ Die SNB hat sich also zum Versuchskaninchen der internationalen...

The US Dollar Index has been trending higher since early May.  This Great Graphic, created on Bloomberg shows, that it has been successfully tested several times. It appears set to be re-tested in the coming days.  It comes in near 94.80 today and rises a little more than two ticks a day to finish the week near 94.90. Technical indicators, like the RSI, MACDs, and Slow Stochastics suggest there is reasonably good...

The governed are ready for a period of retrenchment, consolidation and diplomatic solutions to unwinnable conflicts, as imperfect as the peace might be to hawks. Are you open to a somewhat unconventional perspective on this election? If so, read on. If you’re absolutely confident you know all there is know about this election (good vs evil, Democrat vs. Republican, etc.), well then let’s compare notes in five years and...

The governed are ready for a period of retrenchment, consolidation and diplomatic solutions to unwinnable conflicts, as imperfect as the peace might be to hawks. Are you open to a somewhat unconventional perspective on this election? If so, read on. If you’re absolutely confident you know all there is know about this election (good vs evil, Democrat vs. Republican, etc.), well then let’s compare notes in five years and...

Overview In the second quarter of 2016, the current account surplus amounted to CHF 17 billion. This was CHF 3 billion less than in the year-back quarter, mainly due to a decline in the receipts surplus in primary income (labour and investment income). The receipts surplus in primary income was CHF 1 billion, compared to CHF 7 billion in the year-back quarter. By contrast, the second-quarter surplus of receipts from...

Stock Markets EM initially benefitted from the FOMC decision, but softened into the weekend.  One culprit was lower oil prices, as reports suggest an output deal is unlikely at the OPEC meeting this week in Algeria.  But it wasn’t just EM, as the greenback closed firmer against the majors as well.  We still believe that risk and EM should do fine over the next few weeks, as the Fed basically set a two-month window of...

Great Cause NORMANDY, FRANCE – We continue our work with the bomb squad. Myth disposal is dangerous work: People love their myths more than they love life itself. They may kill for money. But they die for their religions, their governments, their clans… and their ideas. Some people think that even an idea as abstract as “freedom of speech” is worth dying for. It was Voltaire who said: “I disapprove of what you say,...

European Commission President Jean-Claude Juncker said he was aiming to solve a two-year-old dispute with Switzerland over immigration in a country-specific manner even in the wake of Brexit. © Mykhaylo Palinchak | Dreamstime.com The Swiss government has been at pains to implement restrictions on European Union newcomers decided upon in a 2014 referendum without annulling an economically important set of treaties with...