Tag Archive: peg

How Derivatives Markets Responded to the De-Pegging of the Swiss Franc

2017-01-13

by

2017-01-13

bank of england
In a Bank of England Financial Stability Paper, Olga Cielinska, Andreas Joseph, Ujwal Shreyas, John Tanner and Michalis Vasios analyze transactions on the Swiss Franc foreign exchange over-the-counter derivatives market around January 15, 2015, the day when the Swiss National Bank de-pegged the Swiss Franc. From the abstract.

Read More »

Jordan 1999 paper: Why Switzerland should never peg to the Euro

Jordan in the ECO interview


Read More »

Warum die SNB nicht Hongkong, sondern Singapur imitieren wird

2012-12-11

by

2012-12-11

Flag Pins Switzerland Hong Kong
Im Gegensatz zu Hongkong mit dem USD/HKD-Peg kann die Schweiz ein Currency Board, einen fixen Kurs zum Euro nicht für Jahre durchhalten. Die Gründe auf snbchf.com

Read More »

Jordan: Dropping Peg Is Premature

2012-11-03

by

2012-11-03

Jordan in the ECO interview
The Swiss National Bank's cap on the franc of 1.20 per euro remains the right policy tool for now and talk of dropping it is premature, Chairman Thomas Jordan said. See  Reuters

Read More »

The next SNB rumor: Wall Street Journal and our response

2012-09-12

by

2012-09-12

GDP Switzerland vs. Eurozone
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 …

Read More »

Switzerland in MoM deflation due to cheaper energy and clothes

2012-07-06

by

2012-07-06

May CPI Switzerland
Slowing energy prices (MoM -4.2%) and seasonal effects for clothes and footwear (MoM -2.8%) drove Switzerland in a slight deflation on monthly basis again.

Read More »

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

2012-06-10

by

2012-06-10

Adsense inside posts
  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 …

Read More »

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

2012-06-04

by

2012-06-04

Printing PressClick
  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 …

Read More »

CNBC rumors: Different peg methods for the SNB

2012-05-30

by

2012-05-30

Crawling peg RSD
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 …

Read More »

Rumors about tax on Swiss deposits for foreigners and further SNB measures: SNB begging for pips

2012-05-24

by

2012-05-24

capital controls
Exactly when the US had a relatively good Markit Flash PMI, rumors are sent out that deposits in CHF for foreigners should be taxed.  To send out this rumor together with good US data seems to be intentional. According to Banque CIC the SNB has declined to comment. We remember the last SNB meeting when similar rumors circulated.

Read More »

Will the SNB double or triple the forex reserves before they give in ?

2012-05-24

by

2012-05-24

snb buying belling 2010-2012 chf, eur/chf
Some economists have claimed that the Swiss National Bank (SNB) will be always able to maintain the floor. As opposed to George Soros’ defeat of the Bank of England, the SNB is able to print money ad infinitum, whereas the BoE had limited currency reserves to support sterling. The question, however, is where this “infinitum” …

Read More »

Why the SNB fixed the peg at 1.2010 and not at 1.2000 ?

2012-05-24

by

2012-05-24

peg 1.2010 eur chf
As we have showed in a preceding post, the SNB seems to have decided the peg the franc to the euro at 1.20. Therefore the SNB traders were actively selling euros and buying francs even close to the floor limit of 1.20. But then in the beginning of April some Asian traders managed to push the … Continue reading...

Read More »

Is the play time over for the SNB ? SNB Buys Euros Again, but the EUR/CHF does not move a pip

2012-05-20

by

2012-05-20

monetary expansion snb
As also noticed by Credit Suisse, the Swiss National Bank had to buy euros and sell Swiss francs in the week of May 11th to May 18th. Their recent easy strategy to sell euros and buy Swiss Francs and to diversify from euros into other currencies may not continue.

Read More »

Is the SNB pegging away from the Euro to the SDR currency basket using their FX reserves ?

2012-05-10

by

2012-05-10

snb fx currency distribution q1 2012 usd eur jpy
We reckon that the central bank has introduced an automatic peg mechanism which obliges them to buy euros at exactly 1.2010 and sell euros above this level (reasons and details here). If they sold more euros than they bought, they are happy to have offloaded some items of their overloaded balance sheet. If they bought more euros than they sold, however, there are some "superfluous" euros. Instead putting these euros on their balance sheet, they...

Read More »

SNB buys Swiss Francs and sells Euro: Welcome to the EUR/CHF peg

2012-05-01

by

2012-05-01

dailyfx long eur/chf q1 2012
Why the big Q1 loss of the SNB was actually a big win for the central bank Anybody watching the EUR/CHF exchange rate this year was wondering why the volatility the pair saw last year had completely left. The pair slowly fell from 1.2156 over 1.2040 at the end of Q1 to 1.2014 today. FX … Continue reading...

Read More »

SNB meeting on March 15th, 2012: Pure Speculation that SNB raises floor, How to Trade it ?

2012-03-14

by

2012-03-14

Between November 2011 and January 2012 mostly left-wing politicians and trade unions wanted the EUR/CHF floor to be risen to 1.30 or 1.40 and uttered their wishes regularly in the Swiss newspapers, triggering many FX traders to speculate on this hike. Recently these demands have become more silent even if some UBS analysts still see the floor to …

Read More »

SNB: Lift EUR/CHF floor or not ?

2011-12-14

by

2011-12-14

chf vs. gold in 2011
Many participants in the FX markets seem to be sure that the SNB will lift the EUR/CHF flow to 1.25 Here the pros and the cons:

Read More »