Category Archive: 1) SNB and CHF

The Swiss television interview with Thomas Jordan, or was it Leonid Brezhnev ?

   Today Thomas Jordan gave a quick interview in the Swiss television. Everything was so well prepared and as sterilized. Thomas Jordan learned all answers by heart and was answered the questions about one second after the question was asked. It reminded me of an interview in Soviet television with former Soviet leader Leonid Brezhnev. Each …

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SNB only major central bank missing at Jackson Hole, are important SNB decisions looming ?

  The Jackson Hole Symposium is traditionally a meeting of global central bankers, here the 2010 attendance list. This year it takes place between August 30 and September 1. Central bankers assemble  The annual economic symposium for central bankers staged by the Federal Reserve Bank of Kansas City begins in Jackson Hole, Colorado (until September 1). …

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EUR/CHF, A History of Interventions: What markets say, July 2012

More Chatter About The EUR/CHF Peg The FT reports that Switzerland is ‘new China’ in currencies Chatter that the SNB was buying 3 billion francs worth of euros per day. “The picture is one of a central bank that’s not coping with how much money is coming in,” said Kit Juckes, foreign currency analyst at Société … Continue reading »

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SNB zwingt jeden Schweizer implizit 73% seines Einkommens von 2012 in Euros anzulegen

Mit dem SNB Zwischenbericht heute wurde es klar, dass die Schweizerische Nationalbank 77% der im zweiten Quartal um 125 Milliarden Franken erhöhten Devisenreserven in Euro investiert hat. Die Abhängigkeit vom Euro ist so gross geworden, so dass die Schweiz gezwungen sein könnte, ein Teil der Eurozone zu werden, wenn sie einen riesigen Verlust vermeiden will. …

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How Switzerland Implicitly Joins the Eurozone: SNB Obliges each Swiss to Invest 73% of 2012 income in Euros

The SNB forces each Swiss to invest 73% of each one's yearly income into Euros. Reason enough to join the Euro zone ?

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SNB results: SNB invested 77% of the huge Q2 increase in reserves into Euros. Peg at risk ?

  The Swiss National Bank (SNB) reported a profit of 6.5 billion Swiss Franc for the first half year (H1). After a loss of 1.7 bln. francs in the first quarter (Q1), it had a 8.2 billion profit for the second quarter (Q2). The Q2 SNB results of 8.2 bln. CHF were less than our … Continue reading »

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SNB Zwischenbericht 2. Quartal 2012: Nationalbank möglicherweise mit mehr als 10 Milliarden Gewinn

  Am 31. Juli um 7.30 Uhr wird die Schweizerische Nationalbank (SNB) den Zwischenbericht für das zweite Quartal 2012 herausgeben. Wir offerieren unseren Lesern schon jetzt eine Schätzung.  Wir rechnen mit einem Gewinn von 10,65 Milliarden CHF dank der starken Erhöhung der Devisenreserven in den Monaten Mai und Juni und der Abschwächung des Franken gegenüber dem US-Dollar, …

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SNB Results: SNB poised for 10 billion CHF quarterly profit

  On July 31st the Swiss National Bank will publish interim results for the second quarter 2012. Already now we offer  an estimate to our readers. Our estimate does not cover the central bank’s Forex trading results, they are difficult to estimate. A central bank is not a day trader, therefore the influence should be limited. …

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At EUR/CHF 1.10 SNB with 31 bln. loss, each Swiss losing 150 francs per week

The Swiss National Bank would realize a loss of 31 bln. francs, if it accepted a EUR/CHF exchange rate of 1.10 instead 1.20 and if we assume that the Swissie also appreciates against the dollar and other currencies

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EUR/CHF, A History of Interventions: What markets say, June 2012

SNB In A Bind With Euro Holdings Today’s reserve data showed skyrocketing reserves at the Swiss National Bank as they defend the EUR/CHF floor. Reserves were at 365B francs at the end of Q2 compared to 245B at the end of March, with all the growth coming in the final two months of the quarter … Continue reading »

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The win of the pro-bailout parties in the Greek elections was no win for the SNB

  The win for the pro-bailout parties in the Greek elections was no win for the Swiss National Bank (SNB), even if the fear of an immediate bank-run and extreme money flows into Switzerland are avoided.  Also the fact that QE3 is not coming in the next weeks did not help the SNB.

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Is the SNB prepared for the black swan ?

Will the SNB printing policy lead to inflation and a housing bust when Germany leaves the Euro ? Recently the voices for a German euro exit have become louder and louder. The most recent voice comes from Biderman , the FT says that the rise of German Bunds holds the secret how the eurozone crisis will … Continue reading...

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Steen Jakobsen, Chief Economist Saxo Bank is buying in our arguments

Steen Jakobsen sees 25% percent chance that the floor breaks and if it does it breaks to parity. Last week Thomas Jordan removed any hopes on a hike of the EUR/CHF and invited smart money and hedge funds to a no-risk, high return game on the Swiss franc, which these gratefully accepted. After Morgan Stanley …

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Other blogs & info on SNB & CHF



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Another week, another 14 bln. francs printed

According to the newest monetary data, in the week ending June 8th, the unsterialized money supply (as measured in sight deposits of domestic and foreign banks and deposits by the Swiss confederation) increased by 14 billion Swiss francs.

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The Swiss National Bank and the EUR/CHF floor have become a political football

  How the SNB Chairman Jordan has invited hedge funds and smart investors to a risk-free, high-return guaranteed investment in Swiss francs A wrap-up of Swiss newspapers for non-German literates In parallel to the start of the UEFA Euro 2012, the Swiss National Bank and its policy towards the EUR/CHF exchange rate has become a political …

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The “Sell in May, come back in October” effect and its equivalent for the SNB

  The "Sell in May, come back in October" effect It is the same seasonal anomaly nearly every year: The statistically flawed (see here and here) Non-Farm Payrolls (NFP) report delivers some good winter readings with 200K new jobs, this time additionally fuelled by a weather effect; biased data that let hard-core Keynesian policy makers doubt Okun's law. Consequently the stock markets rally …

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A central bank running suicide ? SNB prints at pace never seen since EUR/CHF parity in August 2011

  The most recent money supply data from the Swiss National Bank (SNB) has shown increases of huge amounts. As compared with its loss of 19 bln. francs in 2010 (3% percent of the Swiss GDP), the central bank printed tremendous 17.3 bln. in the week ending in June 1st and 13 bln. in the one …

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EUR/CHF, A History of Interventions: May 2012

FT A Wee Bit Late To The Party… Notices Europeans have been buying Swiss francs and dollars. Who knew? By Jamie Coleman  || May 30, 2012 at 19:43 GMT AUD/USD, NZD/USD Dragged Higher As EUR Recovers As Gerry mentioned earlier, the talk of a rescue fund for EZ banks seems to have set off some short covering … Continue reading »

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CNBC rumors: Different peg methods for the SNB

There are currently rumors going on on CNBC that the SNB is planning something this night. As we explained here, the SNB had to strongly restart the printing press and printed tremendous 13 bln francs in one week. Moreover, they probably sold some of their in Q4 2011 and Q1 2012 acquired GBP, JYP and …

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