Thanks for the graphs. It's pretty impressive. What is totally crazy too is when you compare unemployement rates: Switzerland vs Eurozone.
The quite funny thing when you look at it, is that the SNB is somewhere doing some QE for the Eurozone: When they were buying EUR/CHF, they then bought France, Germany and other euro countries debt with these euros. Switzerland's problem is that they are a little bit alone to do things correctly and in today's "currency race to the bottom", they end up with an overvalued currency compared to the others.
I agree with you, scenario A) is quite unlikely in the near future, and unfortunately maybe later too...
You may even have a (catastrophic) scenario C): Eurozone continues on its trend and it get worse and worse. At one point, SNB decides to throw in the towel and takes a massive loss rather than to get dragged down with the Euro. They lift the floor and sell all Euros they have at market.Right now, it goes again "well", but when there will be fears again that the Euro and Eurozone explodes or such things ...
If it can reassure you, I'm in the same situation: Fundamentally bearish, but heavily long EUR/CHF because "it couldn't go down very far" I have to admit I made some money on EUR/CHF this past 2 years, even if it mainly was going down slowly.
The quite funny thing when you look at it, is that the SNB is somewhere doing some QE for the Eurozone: When they were buying EUR/CHF, they then bought France, Germany and other euro countries debt with these euros. Switzerland's problem is that they are a little bit alone to do things correctly and in today's "currency race to the bottom", they end up with an overvalued currency compared to the others.
I agree with you, scenario A) is quite unlikely in the near future, and unfortunately maybe later too...
You may even have a (catastrophic) scenario C): Eurozone continues on its trend and it get worse and worse. At one point, SNB decides to throw in the towel and takes a massive loss rather than to get dragged down with the Euro. They lift the floor and sell all Euros they have at market.Right now, it goes again "well", but when there will be fears again that the Euro and Eurozone explodes or such things ...
If it can reassure you, I'm in the same situation: Fundamentally bearish, but heavily long EUR/CHF because "it couldn't go down very far" I have to admit I made some money on EUR/CHF this past 2 years, even if it mainly was going down slowly.