On 24 July 2017, the Swiss franc was 1.101 to the euro. One week later on 31 July 2017 it was 1.145, according to Bloomberg. Over the month it dropped from 1.095 to 1.145, a drop Reuters described as the biggest monthly drop in six years. © Wirojsid | Dreamstime The Swiss National Bank (SNB) has been working hard to bring down the value of the Swiss franc. Speaking to the newspaper Le Temps last week, SNB president Thomas Jordan described the currency as “significantly overvalued”. But why...
Read More »Swiss franc slides 4 percent in one week
On 24 July 2017, the Swiss franc was 1.101 to the euro. One week later on 31 July 2017 it was 1.145, according to Bloomberg. Over the month it dropped from 1.095 to 1.145, a drop Reuters described as the biggest monthly drop in six years. © Wirojsid | Dreamstime The Swiss National Bank (SNB) has been working hard to bring down the value of the Swiss franc. Speaking to the newspaper Le Temps last week, SNB president Thomas Jordan described the currency as “significantly overvalued”. But why...
Read More »Swiss Banks Paid Out €1 Billion In Negative Interest Rates In The First Half
Overnight, the Swiss National Bank disclosed the composition and breakdown of its FX reserves as of June 30. There were no notable changes, as the central bank kept most of its asset allocations unchanged from the previous quarter, with equities, government bonds and “other bonds”, at 20%, 68% and 12% respectively. There were also no shifts in the currency composition as shown in the table below. There was one notable –...
Read More »Swiss Banks Paid Out €1 Billion In Negative Interest Rates In The First Half
Overnight, the Swiss National Bank disclosed the composition and breakdown of its FX reserves as of June 30. There were no notable changes, as the central bank kept most of its asset allocations unchanged from the previous quarter, with equities, government bonds and "other bonds", at 20%, 68% and 12% respectively. There were also no shifts in the currency composition as shown in the table below. There was one notable - and unexpected - development, and it had to do with the SNB's -0.75%...
Read More »Fighting inflation with FX, a real traders market
(GLOBALINTELHUB.COM) Dover, DE — 7/18/2017 — Hidden in plain site, as the Trump administration finally released something of substance regarding the so called promised “Trade Negotiation” we see FX take center stage in the global drama unfolding. As noted on a Zero Hedge article: The much anticipated document (press release and link to full document) released by U.S. Trade Representative Robert Lighthizer said the...
Read More »Fighting inflation with FX, a real traders market
(GLOBALINTELHUB.COM) Dover, DE — 7/18/2017 — Hidden in plain site, as the Trump administration finally released something of substance regarding the so called promised “Trade Negotiation” we see FX take center stage in the global drama unfolding. As noted on a Zero Hedge article: The much anticipated document (press release and link to full document) released by U.S. Trade Representative Robert Lighthizer said the Trump administration aimed to reduce the U.S. trade deficit by...
Read More »Swiss franc outstrips other currencies over last 117 years
Recent analysis by Credit Suisse, London Business School and Cambridge Judge Business School shows the Swiss franc’s enduring strength. © Sergey Kuzmin – Dreamstime.com The reports says that for a small country with just 0.1% of the world’s population and less than 0.01% of its land mass, Switzerland punches well above its weight financially. The country has had the world’s lowest 117-year average annual inflation rate of just 2.2%. This low inflation is one of the phenomena that has given...
Read More »Is the Central Bank’s Rigged Stock Market Ready to Crash on Schedule?
The following article by David Haggith was first published on The Great Recession Blog: We just saw a major rift open in the US stock market that we haven’t seen since the dot-com bust in 1999. While the Dow rose by almost half a percent to a new all-time high, the NASDAQ, because it is heavier tech stocks, plunged almost 2%. Tech stocks nosedived while others rose to create new highs. Is this a one-off, or has a...
Read More »The SNB’s Currency Interventions
On the FT’s Alphaville blog, Matthew Klein reviews Swiss monetary policy over the last years and its effect on the real economy. He concludes that it seems the SNB’s relentless accumulation of foreign assets has been pointless — at best. More likely, the behaviour qualifies as predatory mercantilism at the expense of the rest of the world, especially Switzerland’s hard-hit neighbours. SNB Holdings, 2001 - 2017(see...
Read More »The SNB’s Currency Interventions
On the FT’s Alphaville blog, Matthew Klein reviews Swiss monetary policy over the last years and its effect on the real economy. He concludes that it seems the SNB’s relentless accumulation of foreign assets has been pointless — at best. More likely, the behaviour qualifies as predatory mercantilism at the expense of the rest of the world, especially Switzerland’s hard-hit neighbours.
Read More »