Tag Archives: Featured

Since the start of the year GBP/CHF exchange rates have increased from 1.2377 to 1.3212 at the time of writing this report. To put this into monetary value, a client that converts £200,000 into CHF could now achieve an additional 16,700 Swiss Francs. Sterling strength as no deal Brexit outcome fades The pound has been gaining momentum across the board as the market prices in the fact that the UK is less likely to depart...

China’s central bank was given more independence to conduct monetary policies in late 2003. It had been operating under Order No. 46 of the President of the People’s Republic of China issued in March 1995, which led the 3rd Session of the Eighth National People’s Congress (China’s de facto legislature) to create and adopt the Law of the People’s Republic of China on the People’s Bank of China. This was amended in...

Defending 3,800 and a Swing Trade Play For one week, bulls have been defending the 3,800 USD value area with success. But on March 4th they had to give way to the constant pressure. Prices fell quickly to the 3,700 USD level. These extended times of range bound trading are typical for Bitcoin Bottom Building in sideways ranges. This 60 minute chart of Bitcoin shows (represented by the yellow candlestick wicks) how the...

Overview The SNB earned 2 billion on negative interest rates, but lost nearly 17 billion CHF on FX investments, of which 5 bn on bonds and 12 bn on stocks. The increasing volatility of SNB Earnings Annual results are not really definite. Given that the SNB accumulates foreign currencies with interventions, the results have huge swings that depends on the FX rate. But the SNB may lose 50 billion in one year and win 60...

Swiss Franc The Euro has risen by 0.04% at 1.1328 EUR/CHF and USD/CHF, March 05(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: It is an eventful day, but the capital markets are taking it in stride. Equity markets are mixed. Asia may have been weighed down by China’s shaving its growth target and announced around CNY2 trillion (~$300 bln) in tax cuts to support...

05.03.2019 – The consumer price index (CPI) increased by 0.4% in February 2019 compared with the previous month, reaching 101.7 points (December 2015 = 100). Inflation was 0.6% compared with the same month of the previous year. These are the results of the Federal Statistical Office (FSO). The 0.4% increase compared with the previous month can be explained by several factors including rising prices for air transport and...

Seit Jahrzehnten geistert die Illusion in den Köpfen der Oekonomen herum, man könne mit Zinssenkungen eine Wirtschaft ankurbeln. Den Vogel schiesst der vermeintliche „Starökonom“ von der Harvard University, Kenneth Rogoff, ab. Er prophezeit, dass künftige Wirtschaftskrisen mit Negativzinsen von bis zu minus 6 Prozent bekämpft würden. In der jüngsten Sonntagspresse nimmt sich die NZZ, die „externe Public Relations...

The Fed is the mortal enemy of the young generations, and thus of the nation itself. “The wealth effect” generated by rising stock and housing prices has long been a core goal of the Federal Reserve and other central banks. As Lance Roberts noted in his recent commentary So, The Fed Doesn’t Target The Market, Eh?(Zero Hedge), Ben Bernanke added a “third mandate” to the Fed – the creation of the “wealth effect”–in 2010,...

We have written numerous articles about capital consumption. Our monetary system has a falling interest rate, which causes both capital churn and conversion of one party’s wealth into another’s income. It also has too-low interest, which encourages borrowing to consume (which, as everyone knows, adds to Gross Domestic Product—GDP). What Is Capital At the same time, of course entrepreneurs are creating new capital. Keith...

The important events take place in the second half of the week ahead: the ECB meeting and the US employment report.  A dovish hold by the ECB is the most likely outcome.  US jobs growth is bound to slow from the heady 304k gain in January, but there won’t be anything in it that lends credence to ideas that the world’s largest economy is on the precipice of a recession. The Brexit drama could be moving into its...