EUR/CHF Makes New Lows; SNB Lurking at 1.35
The euro continues to lose ground against the Swiss franc, as the pair reaches yet another all-time low in trading today. However, the specter of a Swiss Bank intervention looms large, with market insiders pegging the 1.35 handle as the next likely point of action. The EUR/CHF is last trading at 1.3605, as the pair… Continue Reading
Swiss Bank Intervenes; EUR/CHF Surges
The Swiss National Bank is suspected of having intervened in the currencies market earlier today, rumored to have purchased upwards of 17 yards worth of EUR/CHF. The SNB is believed to have been sitting on the bid near 1.40 all week, creating a floor for the currency pair in recent trading. Last trading at 1.4125,… Continue Reading
Swiss Bank Runs Out of Ammo: EUR/CHF Plummeting
The Swiss National Bank has finally stepped back its intervention efforts aimed at weakening the franc against the euro. Though ultimately caving to market forces, the bank’s efforts in the face of a collapsing euro have been impressive. Since April, the SNB is suspected of holding the EUR/CHF to an extremely tight range, centering at… Continue Reading
Hildebrand: SNB Policy to Weaken Franc Remains; Rate Hike Will Come
The Swiss National Bank will continue to counter “excessive” gains in the franc against the euro in light of the ongoing debt crisis in the eurozone, according to SNB President Philipp Hildebrand. In the SNB’s annual shareholder meeting today, Mr. Hildebrand was generally upbeat on the Swiss economy, though he warned that excessive gains for… Continue Reading
Deutsche Bank: EUR/CHF May Reach 1.3750; SNB a Tempered Threat
Fiscal strains and low inflation in the eurozone should counteract SNB interventions, pushing the EUR/CHF as low as 1.3750, according to Deutsche Bank. Henrik Gullberg, an analyst at the firm, considers any SNB resistance to a strengthening franc a futile venture. In a research note, Mr. Gullberg wrote, “European deficit concerns are supportive for the… Continue Reading
US Dollar Continues Lower as SNB Loooms
The US dollar is weak across the board today, the yen excepted, as a second round of selloffs has pushed the greenback to its lowest levels of the session. The GBP/USD is trading at (approx.) 1.5485, its highest level since February 18, 2010. Poised to make good on its double-bottom formation, the GBP/USD may reach… Continue Reading
EU-IMF Resolution Sparks Rally for Riskier Assets
Forex traders are picking up all the risk they can get their hands on, following updated information on the new (and much improved) relief package for Greece. The EU will commit as much as 30 billion euros ($41 billion) in 2010, in the form of direct loans to Greece. The IMF, meanwhile, may offer an… Continue Reading
SNB Intervenes in EUR/CHF, Again
It appears as though the SNB is again speculating in the currencies market; they are suspected of intervening in the EUR/CHF for a second time this month. The EUR/CHF reached a high of 1.4395 following the suspected move by the SNB, marking the franc’s lowest point against the euro since the April 1 intervention. Ian… Continue Reading
Another Warning to China: Beware the Housing Bubble
China is on a “treadmill to hell,” hedge fund manager James Chanos warns of China’s property market bubble. Though not the first to warn of the developing housing bubble in China, Mr. Chanos has a burst date in mind and it may come as soon as this year. Still, while a bursting property bubble may… Continue Reading
Barclays: EUR/CHF Heading Lower Despite SNB Activities
Barclays Capital sees the euro declining further against the Swiss franc despite SNB intervention efforts. Barclays analysts wrote that “despite the actions of the central bank last week, the euro/franc remains in a clear downtrend. The absence of a market-generated recovery makes us reluctant to assume the downtrend is over.” The analysts predict that the… Continue Reading
