Category Archive: 1) SNB and CHF
SNB Monetary Data Week October 26
Seasonal effects, the good months for the SNB and the US economy, but weaker ones for emerging markets and Switzerland Despite the seasonal effects between October and March, the SNB is not able to sell currency reserves consistently. Traditionally the USD gets stronger and stocks rise over the autumn months till January. This year’s stocks appreciation was possibly already anticipated …
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SNB Monetary Data Week October 19
Seasonal effects, the good months for the SNB and the US economy, but weaker ones for emerging markets and Switzerland Given that the seasonal effects between October to March have started, the SNB might be able to sell some currency reserves. Traditionally both the USD gets stronger and stocks rise over the autumn months till January. This year’s stocks appreciation was …
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SNB Monetary Data Week October 12
Seasonal effects, the good months for the SNB and the US economy, but weaker ones for emerging markets and Switzerland, have started Given that the seasonal effects between October to March have started, the SNB might be able to sell some currency reserves. Traditionally both the USD gets stronger and stocks rise over the autumn months till January. This year’s stocks …
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IMF Data: SNB Forex Reserves and Gold in September 2012
This link on the SNB website shows the data the central bank provides to the International Monetary Fund (IMF). It shows the SNB Forex and gold reserves in the last month. It is so-called “IMF Special Data Dissemination Standard (SNB Data)” It is released together with the international investment position, some monetary aggregates and the balance of payments two weeks after …
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Strange movement in EUR/CHF in Asia session, a possible explanation
Strange movement in the EUR/CHF in the Asian session today The Asian session was a risk-on session, it recovered some of yesterday’s losses. After yesterday’s rather good HSBC services PMI, Shanghai Composite was up today by 1.97%. Therefore safe-havens like the yen and the Swissie were under pressure. At first, some Forex traders …
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SNB Monetary Data Week October 5
Seasonal effects, the good months for the SNB and the US economy, but weaker ones for emerging markets and Switzerland, have started Given that the seasonal effects between October to March have started, the SNB might be able to sell some currency reserves. Traditionally the United States and the USD dollar become stronger and stocks rise over the autumn months …
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SNB Monetary Data Week of September 28
Seasonal effects, the good months for the SNB and the US economy, but weaker ones for emerging markets and Switzerland, have started Given that the seasonal effects between October to March have started, the SNB might be able to sell some currency reserves. Traditionally the United States and the USD dollar become stronger over the autumn months till …
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Standard and Poor’s critique of the Swiss National Bank, part 1
Part 1: Swiss investments abroad [This paper includes some of the S&P critique, but also aims to clarify some of S&P’s misleading points] Last Thursday Thomas Moser, a member of the Swiss National Bank (SNB) governing council, said that one of the main reasons for the strong franc is the conversion of Swiss foreign incomes …
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Do Swiss companies prefer to hold cash at the SNB instead of local banks ?
The most recent SNB monetary data show that more and more companies are increasing their deposits at the central bank at a quicker speed than local banks. Might this be missing trust in the Swiss banking system ?
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Swiss Net International Investment Position Increases by 64 Billion Francs
Swiss Gross National Income (GNI) rises by 1.8% in Q2, after Q1 +0.5% According to the latest SNB Monthly Bulletin, the Swiss net international investment position (NIIP) has improved by 64.5 billion francs. The Gross National Income (GNI) rises by 1.8% in Q2. The SNB currency reserves rose by 128 Bln. Francs in the …
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Can The SNB Make Profit On Currency Reserves ?
Abstract We determine the main criteria with which markets evaluate currency prices. We focus on explaining the differences between the carry trade era (or like Ben Barnanke called it “The Great Moderation”) and the period after the financial crisis. Our research shows that each one of the following three main preconditions must be fulfilled, …
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Isn’t it wonderful to trade with a strong central bank behind you?
Isn’t it wonderful to have a strong central bank like the SNB sitting behind you when trading Forex? Losses are limited to the floor of 1.20 and in the meantime you can gain forward swaps with the higher euro zone interest rates. Today the Swiss National Bank (SNB) decided in its monetary policy assessment …
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The next SNB rumor: Wall Street Journal and our response
A bit breathlessly…. The next SNB rumor story comes from the so-well established Wall Street Journal, its columnist Nick Hastings. WSJ: The Swiss National Bank was bold before. And the central bank would be well advised to be just as bold again. When the SNB announced just over a year ago that it was setting a …
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SNB prints nearly 5 billion francs in one week, FX traders poised to get ripped off
As we expected in our post “What’s this crazy movement in EUR/CHF ? SNB Floor Hike ?“, long-time investors, global macro funds and US investment banks are moving into gold and the Swiss franc again. The SNB had to buy euros and print new Swiss francs of around 5 billion francs last week, as … Continue reading »
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The Big Swiss Faustian Bargain: Differences between SNB, ECB and Fed Money Printing Explained
In this post we show that the risks the Fed, the ECB and the Bundesbank incur are far smaller than the one the Swiss SNB takes. The Fed has “just” an inflation risk, that could cost 200 billion US$, 1.2% of US GDP. The ECB and Bundesbank have the risk that the euro zone splits … Continue reading »
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The Full English Translation of the Interview with Thomas Jordan
Here a translation of the interview with the president of the Swiss National Bank, Thomas Jordan, in the finance magazine ECO of the Swiss television SF1. Here the original German video. Question: Given that the SNB has reserves of over 200 bln. Euros, are you still able to sleep ? Jordan: We are in a … Continue reading...
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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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