Tag Archive: Switzerland

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

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

Read More »

German Schatz turns negative again

2012-07-18

by

2012-07-18

Government bond yields under 1% July 18th
After the first time End May, the German Schatz turns negative: German June 2014 Schatz Average Yield -0.06% vs 0.10% on June 20 Swiss Eidgenossen 2yrs still at -0.4%

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 »

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

2012-06-30

by

2012-06-30

genius
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 »

Read More »

Spread Swiss Eidgenossen vs. German Bund to see further gains

2012-06-29

by

2012-06-29

Germany Swiss Spread
The spread between the Swiss government Eidgenossen bond against the Germany 10yrs. Bund will see further gain in the future, after the Euro summit opened the door for ESM direct financing of banks.   Differences between EFSF and ESM explained

Read More »

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

2012-06-25

by

2012-06-25

Jordan
  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.

Read More »

The other risk for the SNB: Will German Bund yields double ?

2012-06-20

by

2012-06-20

10 yrs. Bunds
In the latest post we started discussing the implications of a German euro exit for the Swiss National Bank, this time we will look on another risk: The rising German Bund yields.

Read More »

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

2012-06-12

by

2012-06-12

Steen2
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 …

Read More »

Other blogs & info on SNB & CHF



Read More »

Another week, another 14 bln. francs printed

2012-06-11

by

2012-06-11

bal week june 1st
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.

Read More »

About

Author


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 »

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

2012-06-09

by

2012-06-09

Sell in May, Come back in October
  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 …

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 »

The German supply-side reforms or will German companies take over the PIIGS ?

2012-06-02

by

2012-06-02

Greece vs. Eastern E
Words heart on German street in 2010 during the first Greek bailouts were that Germany should obtain the Greek islands as collateral if Greece is not able to pay back the debt to Germany. But even today German n-tv is reporting about many Greek real estate brokers that are currently delling islands. If it is not that type … Continue...

Read More »

EUR/CHF, A History of Interventions: May 2012

2012-05-31

by

2012-05-31

5-24 eurchf
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 »

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 »

Huge rise in Currency Reserves: The SNB has restarted the printing press

2012-05-29

by

2012-05-29

Euro Trash Recycled
The game for the Swiss National Bank seems to have changed completely. Again the central bank had increase money supply, as measured by deposits at the SNB by local banks and other sight deposits, this time even by 13219 mil. francs (source). This money printing implies that the SNB had to buy in Euros in …

Read More »

SNB’s Jordan admits that EUR/CHF floor will not be raised

2012-05-27

by

2012-05-27

SNB Chairman Jordan speaks to media during a news conference in Bern
For the first time the chairman of the Swiss National Bank Jordan has admitted that the EUR/CHF floor of 1.20 will not be raised. In an interview with the Swiss Sonntagszeitung, here also cited by Bloomberg, he said:

Read More »