Tag Archives: USD

Swiss Franc EUR/CHF - Euro Swiss Franc, January 31(see more posts on EUR/CHF, ) - Click to enlarge FX Rates The immigration imbroglio in the United States is being cited in various accounts for the price action, including yesterday’s drop in the S&P 500, where the intraday loss was the largest since before the election.  The drama is also being blamed for the dollar’s losses yesterday, which it is...

  Swiss Franc The EUR/CHF collapsed once again to 1.0650. This rate broke the 1.0680 – 1.0700 that constituted the previous intervention area. Reasons can be found in the weak U.S. GDP weak, in Trump’s foreign trade policy and in the strong Swiss trade balance. Who has understand the principles of the balance of payments, knows that private investors and the SNB must export the equivalent of the current account...

Summary: Fed, BOJ, and BOE meet next week, each may adjust economic assessments in more favorable direction. Key challenge for many investors is the new US Administration. US employment, EMU inflation, Q4 GDP, and China’s PMI are among the data highlights. Three major central banks meet in the week ahead, and there are several important reports due out that will give investors more insight into how the...

Summary: The US has a direct investment strategy for historical reasons. It competes against export-oriented strategies. The FDI strategy does make low-skilled domestic labor compete with low-skilled foreign worker, but skilled workers abroad complement the skilled domestic worker. The rise of the populist-nationalism over the past year or so is partly predicated on a realist view of international relations. ...

Swiss Franc EUR/CHF - Euro Swiss Franc , January 27(see more posts on EUR/CHF, ) - Click to enlarge GBP/CHF Sterling Swiss Franc Exchange Rate Update Sterling vs the Swiss Franc has been going in an upwards direction this week after the Brexit verdict released on Tuesday morning. Initially this caused the Pound to fall vs the Swiss Franc but since then Sterling has continued to go upwards. Later today UK Prime...

Summary: Many are concerned that the dollar and interest rates have become decoupled. We are not convinced. Correlations, not to be eyeballed, are still robust. The US 10-year yield is at its highs for the year, and yet the US dollar has been struggling to gain traction.Some suggest that this means that the dollar rally is over.  Charts like this one are circulating among market participants. This  Great...

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...

Swiss Franc EUR/CHF - Euro Swiss Franc, January 25(see more posts on EUR/CHF, ) Source: Investing.com - Click to enlarge GBP/CHF The pound is higher against the Swiss Franc as we finally get some clarity over just what Brexit means. The pound was initially expected to fall but contrary to popular expectation it found favour as Theresa May finally delivered some clarity over just what Brexit means. Most...

Investors appreciate that a strong dollar can impact US growth through the net export component of GDP. The dollar’s appreciation can push up the price of exports and lower the cost of imports. The St. Louis Fed took a look at how the strong dollar from 2014 to the beginning of 2016 impacted the net export function of GDP. It is clear that a strong dollar in this period was associated with a drag on growth from net...

Swiss Franc EUR/CHF - Euro Swiss Franc, January 23(see more posts on EUR/CHF, ) - Click to enlarge FX Rates The US dollar had a poor close in the North American session before the weekend as investors appear increasing anxious about the new US Administration’s economic policies and priorities.With no fresh details emerging over the weekend, some stale dollar longs exited.  The dollar stabilized in the European...