Tag Archive: $CHF

FX Weekly Preview: Dollar Power

2018-05-21

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2018-05-21

There are several trends in the capital markets at a high-level. The euro and yen's decline has coincided with sustained rallies in European and Japanese equity benchmarks. Emerging market equities and currencies have been trending lower.

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FX Daily, April 18: Greenback is Firm, While Soft Inflation Drags Sterling from Perch

2018-04-18

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2018-04-18

The US dollar is enjoying a firmer tone against major and most emerging market currencies. Sterling, which has become a market darling, hit an air pocket after softer than expected CPI. UK headline CPI rose 0.1% in March, while the market expected a 0.3% increase. The recently introduced preferred measure, CPIH slipped to 2.3% from 2.5%, the weakest in a year.

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Great Graphic: Potential Topping Pattern for Euro

2018-03-14

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2018-03-14

EUR/BGN Currency Oct 2017 - Apr 2018
The euro appears to be potentially carving out a topping pattern. Recall that after correcting lower last September and October, the euro rallied for three months through January before weakening 1.75% in February. That was its biggest decline since February 2017. The euro's high print was actually on February 16 near $1.2555, when it posted a key reversal, which is when it makes a new high for the move and then closes below the previous day's low.

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FX Daily, January 29: A Brief Word

2018-01-29

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2018-01-29

The US dollar is modestly firmer, but nothing to suggest a outright correction rather than consolidation. However, have a dramatic drop over the past month, much more than we think is justified by macroeconomic developments and interest rates, we think the dollar may have overshot.

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Swiss industry has learned to live with strong franc

2017-10-28

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2017-10-28

The recent appreciation of the Swiss franc has sent shockwaves through Swiss firms, resulting in job losses and lower research budgets. But viewed long-term, Switzerland’s export-driven economy has adapted remarkably well to a strong currency.

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FX Daily, September 5: Greenback Mixed, North Korea and PMIs in Focus

2017-09-05

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2017-09-05

Reports suggesting that North Korea is moving an ICBM missile toward launch pad in the western part of the country at night to minimize detection, while South Korea is escalating its military preparedness and the US seeks new sanctions, keep investors on edge. Risk assets are mixed. Gold is slightly lower. While the yen is stronger, the Swiss franc is heavier. Asia equities slipped, and European shares are recouping much of yesterday's 0.5% loss.

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FX Daily, August 24: Greenback Firmer in Becalmed Markets

2017-08-24

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2017-08-24

The US dollar is enjoying a firmer tone in quiet. Sterling is stabilizing after grinding down to its lowest level since late June. The Mexican peso, which had dropped in thin trading in Asia and Europe yesterday following Trump's threat to exit NAFTA and force Congress to fund the Wall or face a government shutdown recovered fully and is now slightly higher on the week.

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Is the Yen or Swiss Franc a Better Funding Currency?

2017-08-17

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2017-08-17

Yen and Swiss franc are funding currencies. This goes a long way to explaining why they rally on heightened anxiety. The Swiss have lower rates than Japan and the franc is less volatile than the yen, but technicals argue for caution.

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Indian arms dealer’s Swiss accounts under scrutiny

2017-08-16

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2017-08-16

Swiss authorities have received requests for information concerning possible Swiss bank accounts of Indian defence deals broker Sanjay Bhandari. He is under investigation for allegedly helping Swiss firm Pilatus secure an order for 75 training aircraft for the Indian Air Force in 2012.

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FX Daily, August 11: Geopolitical Tensions Remain Elevated into the Weekend

2017-08-11

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2017-08-11

There has been no apparent attempt by either North Korea or the United States to ease the rhetorical flourishes that have made global investors nervous. Risk assets were liquidated, and the funding currencies, particularly the Japanese yen and Swiss franc were bought back. The yen gained nearly 1.6% this week, ahead of the US session, while the Swiss franc gained 1.3%.

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FX Daily, August 09: North Korea lets EUR/CHF Collapse

2017-08-09

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2017-08-09

The bellicose rhetoric from the US and North Korean officials is the main driver today. We would qualify that assessment by noting that first, the market moves are rather modest, suggesting a low-level anxiety among investors. Second, pre-existing trends have mostly been extended. Turning to Asia first, the Korea's equity market fell 1.1%. The Kospi has fallen for the past two weeks (~2.2%).

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Great Graphic: What Is the Swiss Franc Telling Us?

2017-07-29

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2017-07-29

Swiss franc weakness is a function of the demand for euros. SNB indicates it will lag behind the other major central banks in normalization process. Easing of political anxiety in Europe is also negative for the franc.

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Inclusion in SDR Does Not Spur Official Demand for the Yuan

2017-04-04

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2017-04-04

China's share of global reserves is in line with expectations prior to its inclusion in the SDR. Three factors influencing allocated reserves - valuation, portfolio decisions, and China's gradual inclusion in allocated reserves. The Swiss franc's as a reserve asset diminished, but the "other" category appeared robust.

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