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The Four Books You Must Read If You Really Want to Understand Currency Markets
Because the exchange rate is a relative, not absolute, price, the SNB’s predicament is indicative of far more than domestic issues. In this particular case, the franc's strength also points to a regional misalignment that has vexed Swiss authorities for quite a while: how to retain Switzerland’s traditional standing as a safe harbor and its role as a home for foreign capital while the European Central Bank has adopted experimental monetary policies involving large-scale purchase of securities and significant expansions of its balance sheet. — Mohamed El-Erian, Bloomberg View We think long USD-CHF and short ... (full story)