Not the Ukraine this time, but it's BUBA-Chief Weidmann's fault: Apparently he for the first time publicly mentioned large-scale bond purchases by the ECB as an acceptable response to deflation threats. Coming only 10 days before the next ECB rate decision, Mr Market got a bit jumpy. However, if I remember correctly, Weidmann recently also said that the current EUR/USD exchange rate of around 1.38 is no threat to price stability and that he does not at this point see a threat of deflation in the EZ. So my take is that this is an attempt at jawboning rather than an implied announcement of impending ECB action. Even if the ECB were about to act big time (Mario's BAZOOKA 2.0), the SNB has made clear that it stands ready not only to buy unlimited EUR to protect 1.20, but also to take other measures, which expressly include negative rates, and the IMF has made the same recommendation to the SNB just a few days ago. So in my personal opinion, whatever the ECB decides to do on April 3rd, the EUR/CHF long strategy remains intact as long as Russia does not stage a full scale invasion triggering a military confrontation with the West (..which would not exactly be in their military, political or economic interest). So all I can say to my fellow EUR/CHF bulls is: Keep calm and carry on!
- Post #11,681
- Quote
- Mar 27, 2014 11:35am Mar 27, 2014 11:35am
- | Joined Aug 2012 | Status: Member | 53 Posts
- Post #11,683
- Quote
- Mar 27, 2014 2:15pm Mar 27, 2014 2:15pm
- | Joined Dec 2013 | Status: Member | 36 Posts
Exponencial money management is the key!
- Post #11,684
- Quote
- Mar 27, 2014 2:50pm Mar 27, 2014 2:50pm
- | Joined Oct 2011 | Status: Member | 1,247 Posts
- Post #11,685
- Quote
- Mar 27, 2014 4:02pm Mar 27, 2014 4:02pm
- | Joined Aug 2012 | Status: Member | 53 Posts
- Post #11,686
- Quote
- Mar 27, 2014 4:10pm Mar 27, 2014 4:10pm
- | Joined Oct 2011 | Status: Member | 1,247 Posts
- Post #11,687
- Quote
- Mar 28, 2014 1:45am Mar 28, 2014 1:45am
Trade according to current market condition, not what you think would be.
- Post #11,688
- Quote
- Edited 3:04am Mar 28, 2014 2:45am | Edited 3:04am
- | Joined Oct 2011 | Status: Member | 1,247 Posts
- Post #11,691
- Quote
- Mar 28, 2014 7:45am Mar 28, 2014 7:45am
- | Joined Oct 2011 | Status: Member | 1,247 Posts
- Post #11,693
- Quote
- Mar 28, 2014 9:42am Mar 28, 2014 9:42am
- | Joined Oct 2011 | Status: Member | 1,247 Posts
- Post #11,695
- Quote
- Mar 28, 2014 10:37am Mar 28, 2014 10:37am
- | Joined Oct 2011 | Status: Member | 1,247 Posts
- Post #11,697
- Quote
- Mar 28, 2014 3:24pm Mar 28, 2014 3:24pm
Trade according to current market condition, not what you think would be.
- Post #11,698
- Quote
- Mar 28, 2014 3:34pm Mar 28, 2014 3:34pm
- | Joined Oct 2011 | Status: Member | 1,247 Posts
- Post #11,699
- Quote
- Mar 31, 2014 8:50am Mar 31, 2014 8:50am
- | Joined Oct 2011 | Status: Member | 1,247 Posts