Stress Tests May Add to Swiss Bank Intervention Losses
The Swiss National Bank’s intervention efforts aimed at weakening the franc relative to the euro has resulted in $13.3 billion dollars in losses. However, the real pain may still await the central bank ahead of the eurozone’s stress test results slated for Friday release. Unlike other central banks, the SNB issues shares and is publicly… 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
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
RBS, BofA: Columbian Peso Heading Lower
Bank of America and RBS Greenwich Capital Markets agree that the Columbian peso’s record rally has run its course. The banks are expecting declines of 9 percent against the US dollar by year’s end, following its 6.4 percent surge in first quarter of 2010. Columbia’s central bank is expected to step up purchases of the… Continue Reading
Forex Playbook: April 04-10
Overview In anticipation of the Non-Farm Payrolls report issued Friday, equities markets were relatively quiet over the course of last week’s trading. Both the Dow and S&P 500 registered small gains on the trading week; however, in observance of Good Friday, trading was closed ahead of the jobs report. The US dollar was mixed on… Continue Reading
ATTN Swiss National Bank: You need more than a stick to take down a BULL
Currency traders received a bit of a jolt during Thursday’s trading session, following a suspected intervention by the Swiss National Bank in the currencies market. The SNB is believed to have intervened in the marketplace on multiple occasions since its last confirmed activity in March, 2009. The SNB’s intervention efforts have primarily targeted the Swiss… Continue Reading
Reuters: Swiss Franc Plummets Following SNB Activity
Reuters reports: Traders cited talk of intervention by the Swiss National Bank to lift the euro against the franc. They also said there was also some SNB activity in the dollar/Swiss franc pair. The SNB was not immediately available for comment. The euro fell to record lows below 1.4150 francs EURCHF= but surged to session… Continue Reading
EUR/CHF Reaches All-Time Low, Again; SNB Lurks — UPDATE
UPDATE: Looks like the SNB stepped in as I was writing this latest piece … talk about timing. As written below: One thing to watch out for, however, is an increasingly likely intervention by the Swiss National Bank. While this, in no way, changes the outlook of further appreciation for the franc, it will cause… Continue Reading
