We do not like Purchasing Power or Real Effective Exchange Rate (REER) as measurement for currencies. For us, the trade balance decides if a currency is overvalued. Only the trade balance can express productivity increases, while REER assumes constant productivity in comparison to trade partners. On the other side, a rising trade surplus may also be caused by a higher savings rate while the trade partners decided to...
Read More »Swiss Trade Balance January 2017: Pharma maintains the Exports in the black figures
We do not like Purchasing Power or Real Effective Exchange Rate (REER) as measurement for currencies. For us, the trade balance decides if a currency is overvalued. Only the trade balance can express productivity increases, while REER assumes constant productivity in comparison to trade partners. On the other side, a rising trade surplus may also be caused by a higher savings rate while the trade partners decided to...
Read More »FX Daily, February 21: Dollar Bounces Back
Swiss Franc Switzerland Trade Balance, Jan 2017(see more posts on Switzerland Trade Balance, ) Source: Investing.com - Click to enlarge GBP/CHF The pound to Swiss Franc rate has been in the main driven by sterling weakness which is weighing on the performance of the pound which has been in the main negative but we have lately seen the pound higher. This is mainly due to some clarity over the Brexit and just what...
Read More »2016: Swiss Exports and Swiss Trade Balance at New Record-Highs: Swiss Franc Shock Digested
We do not like Purchasing Power or Real Effective Exchange Rate (REER) as measurement for currencies. For us, the trade balance decides if a currency is overvalued. Only the trade balance can express productivity increases, while REER assumes constant productivity in comparison to trade partners.On the other side, a rising trade surplus may also be caused by a higher savings rate while the trade partners decided to...
Read More »FX Daily, January 26: EUR/CHF collapses to 1.670
Swiss Franc The euro collapsed today, both against USD and CHF. One reason might be the new record for Swiss exports and for the Swiss trade balance. EUR/CHF - Euro Swiss Franc, January 26(see more posts on EUR/CHF, ) - Click to enlarge Sterling gains almost 2% against the Swiss Franc in 3 days, will the Pound continue to climb from here? The Pound has continued to climb throughout the week, after it was...
Read More »Swiss Trade Surplus Shrinks in October
We do not like Purchasing Power or Real Effective Exchange Rate (REER) as measurement for currencies. For us, the trade balance decides if a currency is overvalued. Only the trade balance can express productivity increases, while REER assumes constant productivity in comparison to trade partners. On the other side, a rising trade surplus may also be caused by a higher savings rate while the trade partners decided to...
Read More »FX Daily, November 22: Bonds and Stocks Rally, Leaving Greenback to Meander
Swiss Franc Switzerland Trade Balance, October 2016(see more posts on Switzerland Trade Balance, ). Source: Investing.com - Click to enlarge Sterling has seen huge gains vs the Swiss Franc during today’s trading session as Prime Minister Theresa May spoke out in an attempt to reassure the UK economy. It was one of the most positive speeches since her she took her position and she suggested that the UK would be...
Read More »Swiss Quarterly Trade Surplus over 10 bn CHF for the First Time. Exports + 8.1 percent YoY, Imports +7.9 percent in Q3/2016.
We do not like Purchasing Power or Real Effective Exchange Rate (REER) as measurement for currencies. For us, the trade balance decides if a currency is overvalued. Only the trade balance can express productivity increases, while REER assumes constant productivity in comparison to trade partners. On the other side, a rising trade surplus may also be caused by a higher savings rate while the trade partners decided to...
Read More »FX Daily, October 20: ECB Unlikely to Shake Dollar’s Slumber
Swiss Franc EUR/CHF - Euro Swiss Franc, October 20 2016(see more posts on EUR/CHF, ). - Click to enlarge GBP/CHF rates have fallen dramatically over the past month, as Sterling continues to find itself under pressure against the major currencies. However, despite these losses it is not all doom and gloom for those clients holding GBP, as Tuesday’s positive spike for the Pound proved. Currency does not move in a...
Read More »Swiss Exports + 7.0 percent YoY, Imports +8.4 percent. Trade Surplus +3 bn CHF, Exporters Increase Prices
We do not like Purchasing Power or Real Effective Exchange Rate (REER) as measurement for currencies. For us, the trade balance decides if a currency is overvalued. Only the trade balance can express productivity increases, while REER assumes constant productivity in comparison to trade partners. On the other side, a rising trade surplus may also be caused by a higher savings rate while the trade partners decided to...
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