SNB & CHF

[unable to retrieve full-text content]Net-net, the September Fed funds futures contract was little changed on the week. Four high-income central banks meet in the week ahead; the ECB is the only one in play. China accounted for a full three quarters of the US trade deficit in July.

[unable to retrieve full-text content]The great “science” of economics once discovered an empirical relationship between GDP and unemployment that has been dubbed Okun’s Law. It simply states that the unemployment rate rises as GDP contracts, or vice versa, as production shrinks less peo...

[unable to retrieve full-text content]“Markets make opinions,” says the old Wall Street adage. Perhaps what this means is that when stocks are going up, many consider the economy to be going great. Conversely, when stocks tank it must be because the economic sky is falling.

Christian Zehnder is an established musician. Besides singing in operas, writing music for the theatre, and giving singing lessons, he records the sound of echoes in the Alps. (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:...

[unable to retrieve full-text content]During this week the Swiss Franc index lost against both dollar and euro. The CHF index ended one percent down. Despite not convincing US jobs, the dollar index ended in positive territory.

[unable to retrieve full-text content]Speculative activity remained light in the latest CFTC reporting period ending August 30. There were no gross position adjustments that we recognize as significant; 10k contracts or more. There were only three gross adjustments by speculators of more than 4k contracts. With the higher EUR/CHF FX rate and weaker U.S. jobs date, speculators went long CHF by 8.2K contracts.

[unable to retrieve full-text content]Underlying concerns about US labor market ease after two robust reports. Sept Fed views will not change much. Canada’s data is disappointing, BOC optimism may be challenged.

[unable to retrieve full-text content]The Swiss Market Index, along with other European markets, is trading slightly higher this week after financials rallied on merger and acquisition rumors and hopes for improved growth. European banks, the industry group battered the most so far this year, lead gains after it emerged that Deutsche Bank AG and Commerzbank AG executives held talks about a potential merger in early August this year.

[unable to retrieve full-text content]Banks in Switzerland reduced their domestic workforce by 4.1 percent in the first half as companies combined and made cost cuts to stem declining profitability, a survey by the nation’s main bank association showed.

[unable to retrieve full-text content]Low Rates Forever, Nothing much is happening in the money world. The press reports that traders are hanging loose, wondering what dumb thing the Fed will do next. Rumor has it that it may decide to raise rates in September, or maybe November… or maybe not at all.