Tag Archives: Crude Oil

Swiss Franc Currency Index The Swiss Franc continues its bad performance against the dollar index that started with Brexit. Click to enlarge. Swiss Franc Currency Index (3 years) The Swiss Franc index is the trade-weighted currency performance (see the currency basket) On a three years interval, the Swiss Franc had a weak performance. The dollar index was far stronger. The dollar makes up 40% of the SNB...

Swiss Franc Currency Index The Swiss Franc continues to under-perform the dollar index in the month after Brexit.   Click to enlarge. Swiss Franc Currency Index (3 years) The Swiss Franc index is the trade-weighted currency performance (see the currency basket) On a three years interval, the Swiss Franc had a weak performance. The dollar index was far stronger. The dollar makes up 40% of the SNB portfolio and of...

Last Thursday, when we reported that Ben Bernanke was to "secretly" meet with Kuroda and Abe this week (he is said to have already met with Japan's central bank head earlier today), we said that "something big was coming" out of Japan which had "helicopter money" on the agenda.  And sure enough, after a dramatic victory for Abe in Japan's upper house elections which gave his party an even greater majority, Abe announced the first hints of helicopter money when Nikkei reported, and Abe...

Swiss Franc Currency Index In the Brexit month, the Swiss franc index clearly underperformed the dollar index. The major reason is that the dollar is seen as a better safe-haven than the Swiss Franc, possibly because Swiss sales are affected more when British demand falls. Click to enlarge. Swiss Franc Currency Index (3 years) The Swiss Franc index is the trade-weighted currency performance (see the currency...

Swiss Franc Currency Index The Swiss franc (-0.3%) and the yen (-0.5%) were the worst performers as so-called “safe haven” buying was reversed during the week after Brexit. But the Swiss Franc index is still stronger in the last month. Via Financial Times. Click to enlarge. Swiss Franc Currency Index (3 years) The Swiss Franc index is the trade-weighted currency performance. On a three years interval, the Swiss...

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...

Summary: Bawerk explains how China will be the lender of last resort of many oil producers. China might let collapse a smaller producer and become much smarter at covering its political bases across producer states to protect longer term sunk costs. It took a while to play through, but our assessment that China would increasingly become the petro-state lender of last resort is starting to come good. The...

Oil exporters recycled their dollar in US treasuries During the reign of the mighty petro-dollar standard, it was necessary for major oil exporters to recycle their dollar holdings back into the dollar-based financial system to maintain their self-imposed exchange rate pegs. US government bonds are the very centrepiece of this elaborate system and it is thus no surprise to see the dollar price correlate well with overall OPEC TSY holdings. In other words, when oil prices were high, oil...

The fact OPEC just agreed to agree on nothing in Vienna isn’t particularly surprising given Doha wounds are still festering from the last attempt at ‘petro-diplomacy’. But the engagement ultimately has to been knocked up as a partial success for Saudi Arabia, where it’s managed to put itself back at the centre of cartel politics by thawing the ‘freeze discussion’ on Riyadh’s terms. Confused? Don’t be. As we flagged in OPEC Politics, Doha’s failure left a very dangerous door open for...

After yesterday's US and UK market holidays which resulted in a session of unchanged global stocks, US futures are largely where they left off Friday, up fractionally, and just under 2,100. Bonds fell as the Federal Reserve moves closer to raising interest rates amid signs inflation is picking up. Oil headed for its longest run of monthly gains in five years, while stocks declined in Europe. Treasuries retreated in the first full day of trading since Yellen said late Friday that the improving...