Tag Archives: newsletter

SNB announces its latest monetary policy decision – 19 September 2019 Sight deposits rate unchanged at -0.75% Willing to intervene and will remain active in FX market as necessary Expansionary monetary policy continues to be necessary Trade tensions could further hurt global economic mood Franc remains highly valued 2019 GDP forecast at 0.5% to 1.0%; previously 1.5% 2019 inflation forecast at 0.4%; previously 0.6% 2020 inflation forecast at 0.2%; previously...

The canton Zug-based Arab Bank Switzerland joins a growing list of established banks now offering clients access to cryptocurrencies. Arab Bank Switzerland has teamed up with blockchain technology firm Taurus to offer its wealthy clients access to bitcoin and ethereum. The bank joins a growing list of established players joining forces with fintech firms to tap into cryptoassets. The partnership says it will launch a “new range of digital asset services, including...

Swiss National Bank leaves expansionary monetary policy unchanged and adjusts basis for calculating negative interest on sight deposits at SNB The Swiss National Bank is keeping the SNB policy rate and interest on sight deposits at the SNB at −0.75%. It remains willing to intervene in the foreign exchange market as necessary, while taking the overall currency situation into consideration. Furthermore, the National Bank is adjusting the basis for calculating negative...

The “everything bubble” is not permanent. All eyes are again on the Federal Reserve, as everyone understands that the Fed is the market— the stock market, the bond market, the art market, the housing market, etc. All markets have been driven higher by one force: central bank money creation and distribution to the financial sector of financiers and corporations, the richest of the rich. What few seem to grasp (because they’re paid not to?) is the Fed is powerless over...

Swiss Franc The Euro has risen by 0.05% to 1.10 EUR/CHF and USD/CHF, September 18(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: News that Saudi Arabia was able to restore 40%-50% of the oil capacity lost by the weekend strike coupled with the Fed’s efforts to offset the squeeze in the money markets are allowing the global capital markets to trade quietly ahead of the conclusion of the FOMC meeting. Equities...

USD/CHF takes the bids inside a six-week-old rising wedge bearish formation. 200-DMA, 50% Fibonacci retracement could restrict immediate upside. 0.9880 becomes the key support. Despite the recent rise, USD/CHF trades below the confluence of 200-day simple moving average (DMA) and 50% Fibonacci retracement of April-August declines, close to 0.9940, while heading into the European session on Wednesday. Even if the pair manages to overcome 0.9950 immediate resistance...

Noch vor wenigen Wochen galt es am Markt bereits mehrheitlich als ausgemacht, dass die Schweizerische Nationalbank am Donnerstag den Leitzins von minus 0,75 Prozent auf minus 1 Prozent weiter absenken wird. Ich konnte die Marktmeinung nie nachvollziehen. Der Wind hat nun tatsächlich gedreht. Eine weitere Absenkung der Zinsen scheint nun so gut wie ausgeschlossen. Wie kam es dazu? Schon vor dem Zinsentscheid der Europäischen Zentralbank vom letzten Donnerstag liess...

◆ Why central banks including China and Russia will keep buying gold due to concerns about the outlook for currencies, including the dollar and the euro, Mark O’Byrne, Research Director of GoldCore told Marketwatch ◆ While the gold tonnage demand from central banks in recent months has been significant and near records, gold remains a tiny fraction of most central banks’ massive foreign-exchange reserves,” O’Byrne says, adding that the trend is “sustainable and...

Oil prices have spiked after the weekend attack on Saudi oil facilities.  Will it impact the Fed tomorrow?  No.  We compare the current (but still unfolding) situation to past oil shocks from the 1970s and discuss the policy responses taken. RECENT DEVELOPMENTS The weekend bombing of Saudi oil facilities continues to reverberate.  The drone strike removed about 5% of global supplies from the market, leading Brent oil to spike to $72 per barrel Monday before falling...

Before the Great “Recession” ended the business cycle as we once knew it, there was a widely accepted concept known as stall speed. In the US, if GDP growth decelerated down to around 2% it suggested the system had reached a danger zone of sorts. In a such a weakened state, one good push, or shock, could send the economy plunging into recession. Any economy which might slow down into a weakened state for whatever reasons becomes susceptible. What might be a minor,...