SNB & CHF

Again, we had another big drop in the dollar this week. No, we don’t mean against the dollar derivatives known as the euro, pound, etc. We mean by the only standard capable of measuring it: gold. The dollar fell 1.4 milligrams, to 25.1mg gold. Or, if you prefer, 0.1 grams of silver. For some reason, it’s obvious when the price of gold in Zimbabwe goes up from Z$118,000,000 to Z$123,700,000 that Zimbabweans are not getting rich. But when the price of gold rises from US $1,118 to $1,237, as...

Again, we had another big drop in the dollar this week. No, we don’t mean against the dollar derivatives known as the euro, pound, etc. We mean by the only standard capable of measuring it: gold. The dollar fell 1.4 milligrams, to 25.1mg gold. Or, if you prefer, 0.1 grams of silver. For some reason, it’s obvious when the price of gold in Zimbabwe goes up from Z$118,000,000 to Z$123,700,000 that Zimbabweans are not getting rich. But when the price of gold rises from US $1,118 to $1,237, as...

Investors have become unhinged. The increased volatility and dramatic market moves challenge even the most robust investment strategies. This sets off a chain reaction of money and risk management that further amplifies the price action, like an echo chamber. Then a cottage industry of reporters, analysts and bloggers offer explanations often without distinguishing the initial sound from the echo. At the same time, that which we have come to think of as terra firma has turned into...

Investors have become unhinged. The increased volatility and dramatic market moves challenge even the most robust investment strategies. This sets off a chain reaction of money and risk management that further amplifies the price action, like an echo chamber. Then a cottage industry of reporters, analysts and bloggers offer explanations often without distinguishing the initial sound from the echo. At the same time, that which we have come to think of as terra firma has turned into...

There are two broad developments in speculative positioning in the Commitment of Traders report in the week ending February 9.  First, the market turbulence saw speculators reduce exposure.  Of the 16 gross positions we track, 11 were reducing positions by liquidating longs or covering shorts. Second, there were an unusual amount of significant gross position adjustments, by which we mean a change of 10k contracts of more in a gross position. There were six such adjustments, and they...

There are two broad developments in speculative positioning in the Commitment of Traders report in the week ending February 9.  First, the market turbulence saw speculators reduce exposure.  Of the 16 gross positions we track, 11 were reducing positions by liquidating longs or covering shorts. Second, there were an unusual amount of significant gross position adjustments, by which we mean a change of 10k contracts of more in a gross position. There were six such adjustments, and they...

The outlook for the dollar in the week ahead is not about economic data or the FOMC and ECB minutes.  It is about the stability of the global capital markets. Many are looking for an event or official action that will stop the rout that is of historic proportions to start the year.   We too have been thinking about what it would take to stop the rot.    However, none of the frequently mentioned events, like an agreement to cut oil output, or for a coordinated policy response by the major...

The outlook for the dollar in the week ahead is not about economic data or the FOMC and ECB minutes.  It is about the stability of the global capital markets.  Many are looking for an event or official action that will stop the rout that is of historic proportions to start the year.   We too have been thinking about what it would take to stop the rot.    However, none of the frequently mentioned events, like an agreement to cut oil output, or for a coordinated policy response by the major...

Submitted by SaxoBank's Dembik Christopher via TradingFloor.com, Currency stability is a prerequisite for China's economic transition Defending the yuan is prohibitively expensive – China cannot beat the market Progressive devaluation managed by PBoC is the most probable scenario for 2016 Remember that the country is on the capitalism learning curve Exchange rates will inevitably be a key discussion point at Shanghai G20 China has moved from being a net importer to a net exporter of...

Submitted by SaxoBank's Dembik Christopher via TradingFloor.com, Currency stability is a prerequisite for China's economic transition Defending the yuan is prohibitively expensive – China cannot beat the market Progressive devaluation managed by PBoC is the most probable scenario for 2016 Remember that the country is on the capitalism learning curve Exchange rates will inevitably be a key discussion point at Shanghai G20 China has moved from being a net importer to a net exporter of...