Tag Archives: 4) FX Trends

Swiss Franc The Euro has fallen by 0.03% to 1.0623 EUR/CHF and USD/CHF, March 26(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Speculation that the US Senate would pass the large stimulus bill worth around 10% of US GDP is thought to have fueled a bounce in equities in recent days. The bill was approved and will now go to the House, where a vote is expected tomorrow. If the rumor was bought, the fact has been...

New packages from the SNB There is no upper limit for virus fund Drawdowns can be made at any time Says interest rates to correspond to the SNB policy rate (-0.50%) Will be available from tomorrow Full statement: The coronavirus pandemic is having a serious impact on the Swiss economy. To combat this crisis, it is essential that companies have access to credit and the banking system has access to liquidity. The Confederation, the SNB and the Swiss Financial Market...

Swiss Franc The Euro has risen by 0.02% to 1.0589 EUR/CHF and USD/CHF, March 25(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Global equities are marching higher. While the Dow Jones Industrials posted its biggest advance since 1933, the US is lagging behind other leading benchmarks. The MSCI Asia Pacific advanced, led by Japan’s Nikkei’s 8% gain. It was third consecutive gain, during which time the Nikkei has...

Swiss Franc The Euro has risen by 0.27% to 1.0584 EUR/CHF and USD/CHF, March 24(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Bottom-picking, after officials step up efforts and some optimism creeps in, is helping lift spirits today. As one looks at the equity bounces, it is important to remember that among the biggest rallies take place in bear markets. Nearly all the bourses in Asia-Pacific rallied, led by a...

Here is the link for the replay of the conference call I hosted earlier today. I shared two ways in which this crisis is different from what we have seen in the last generation. Unlike the Great Financial Crisis, the tech bubble, and the S&L Crisis, the current crisis did not begin in the financial sector, but the real economy. Also, what follows from that is that this crisis is about liquidity, while the GFC was about counter-party risk. In the call, I covered...

Swiss Franc The Euro has risen by 0.45% to 1.0587 EUR/CHF and USD/CHF, March 23(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: In HG Wells’ “War of the Worlds,” the common cold repelled a Martian invasion. Now, a novel coronavirus is disrupting everything and everywhere. Global equities continue to get hammered, though the apparent relative resilience of Japan may have spurred some buying of Japanese equities....

Swiss Franc The Euro has fallen by 0.08% to 1.0531 EUR/CHF and USD/CHF, March 20(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: Dramatic price action continues but in the other direction.  Stocks and bonds have rallied strongly, and the US dollar is snapping a strong advance with a sharp and broad setback. The immediate trigger is hard to identify. Some accounts linking it to fears that the California shutdown...

Swiss Franc The Euro has fallen by 0.32% to 1.0531 EUR/CHF and USD/CHF, March 19(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: It is not just that the dollar soared while stocks and bonds continued to plunge. The dollar’s strength is, in effect, a powerful short-covering rally. It was used to fund a great part of the global circuit of capital. The circuit of capital is in reverse now, and the funding currency...

Swiss Franc The Euro has fallen by 0.27% to 1.0537 EUR/CHF and USD/CHF, March 18(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: A new phase of the market turmoil is at hand. Bonds are no longer proving to be the safe haven for investors fleeing stocks. The tremendous fiscal and monetary efforts, with more likely to come, have sparked a dramatic rise in yields. Meanwhile, equities are getting crushed again....

Swiss Franc The Euro has fallen by 0.21% to 1.0565 EUR/CHF and USD/CHF, March 17(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: While the markets are not as disorderly as they have been, the tone is fragile, and the animal spirits have been crushed. Australian stocks fell more than 10% last week and dropped another 9.7% yesterday before rebounding by almost 6% today to be one of the few Asia Pacific equity...