SNB & CHF

The EU response to Brexit is important. The EU summit and the talks with Turkey are very important. Brexit leaders seem as surprised and unprepared for the results as anyone. And a preview on economic data for the week. The UK choice to leave the EU on a 52%-48% vote is one of those moments that define before and after. It is true that there are examples of the EU not liking the outcome of a referendum and allowed a...

Click to see the video. About a dozen hours after it became clear that a slight majority of the British voters favored leaving the UK, the Financial Times’ John Authers visited me at Brown Brothers Harriman  to discuss the initial implications.  The situation is very fluid and there are many moving pieces.  In Chinese, the characters for crisis are “danger” and “opportunity.”  The danger component is the first cut...

Mohamed El-Erian says the global economy is at a crossroads. ‘Investors cannot rely on correlations as a risk mitigator,’ he says Investors shouldn’t underestimate the role of cash in their portfolios said Mohamed El-Erian, chief economic adviser at Allianz Global Investors. At a breakfast meeting with reporters on Monday, the former Pacific Investment Management Company chief executive said central bank asset...

What is it like to fast as a 15-year-old during Ramadan? This year the period of observing the Muslim fast falls during June. (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:...

The papers from the Reserve Bank of New Zealand describes in easy words where central banks should intervene based on economic history and experience. It avoids the often used econometric considerations. For FX rates those often do not incorporate sufficient long-term data. Details1 Via Forexlive:It is very interesting, but what perhaps makes it more useful for a wider FX trader audience is its reference the triggers...

On the Swiss Franc: The data shows that the Net positioning in the Swiss Franc barely changed, as of June 21, when compared to the previous week. The CFTC reporting week ending June 21 covers the day FOMC and BOJ meetings and ends two days before the UK referendum. The overarching theme was the reduction of exposure.  This is not measured by net positions but by gross positions. Of the eight currencies we track,...

EUR/CHF The Euro-Swiss remained nearly stable at the begin of the week. It peaked shortly before the Brexit referendum, when traders were anticipating a yes. It found its trough when the No was published. We showed the obvious SNB intervention that started at 7.45 am. on Friday. FX Rates June 20 to June 24, 2016 click to enlarge, Source Yahoo Finance USD/CHF After being nearly stable during the week, the dollar...

SNB interventions During the Brexit turmoil on Friday, the Swiss National Bank has intervened in markets. Just after they got into the office, at 7.45 am CET, they started the interventions. Apparently the Singapore office did not have a mandate to do interventions. The central bank drove the EUR/CHF price from a low of 1.0646 towards 1.08. FX traders might have moved it higher to 1.0850. We do not think that the...

Electoral workers prepared a polling station for the referendum on the European Union in north London. Credit Neil Hall/Reuters To help explain why the British voted to leave the European Union, look to Switzerland. The famously neutral Swiss rejected membership in the European Economic Area, a potential steppingstone to the European Union, in a 1992 referendum, but Switzerland didn’t formally withdraw its dormant...

“Some market and economic volatility can be expected as this process unfolds,” Carney said in a televised statement in London after the referendum result. His comments followed Prime Minister David Cameron’s announcement that he will step down this year, which will inject political uncertainty into an already volatile period. His full announcement is below and his statement can be found here: [embedded content]...