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SNB Sight Deposits November 7: No interventions, EUR/CHF under 1.08 with political jitters

 

Headlines Week November 04, 2016: No interventions, EUR/CHF under 1.08 with political jitters

Sight Deposits: show that the SNB has not intervened to sustain the euro, that dipped under EUR/CHF 1.08. We considered the 1.08 as line in sand for the SNB.

FX: The odds of Trump are rising. This causes fear and demand for Swiss Franc. The EUR/CHF fell to 1.0750.

Euro/Swiss Franc FX Cross Rate, November 07

(see more posts on EUR/CHF, )
Euro/Swiss Franc FX Cross Rate, November 07

. Source: markets.ft.com - Click to enlarge

Speculative Positions

Speculators were net short CHF January 2015, shortly before the end of the peg, with 26K contracts.

Then again in December 2015, when they expected a Fed rate hike, with 25K contracts.

We see these net short levels reached again this year, maybe even more. Reason the recently strong U.S. and European PMIs.

Speculative Positions

Choose Swiss Franc for CHF Speculative Position

 

George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on SeekingAlpha.com and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.
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