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  • EURCHF spike higher as SNB sight deposits rise to CHF 365.5bn from CHF 339.6bn

    From reuters.com

    The amount of cash commercial banks hold with the Swiss National Bank rose the most since at least March 2013 last week, indicating the central bank may have intervened to keep the franc down despite scrapping a cap against the euro. Switzerland's central bank shocked financial markets 11 days ago by abandoning a three-year-old cap on the franc, sending the currency soaring against the euro. Sight deposits surged to 365.486 billion Swiss francs last week, up from 339.614 billion francs in the prior week, data from the SNB showed on Monday. The SNB can expand sight deposits through foreign exchange swaps and ... (full story)

oh yes chf, is still somebody trading it? lol
  •  Guest
  • | IP XXX.XX.121.223
Not anymore. Lol. Too unpredictable and exp3nsive spread.
YOU mean they are now buying back what they sold the other week lol ..
Being a Novice in trading, I need to learn how to trade the CHF ...... The difficulty there, is that of knowing what the guys at SNB are thinking, because they come up with one News and do the opposite.... :-( ..... Yes, yes, yes, I know some of you will advise me to stick to my charts but you can't do without news in FX or can you?
Quoting Ojiego
Being a Novice in trading, I need to learn how to trade the CHF ...... The difficulty there, is that of knowing what the guys at SNB are thinking, because they come up with one News and do the opposite.... :-( ..... Yes, yes, yes, I know some of you will advise me to stick to my charts but you can't do without news in FX or can you?
The best thing to do is - STAY AWAY FROM CHF!!!
  •  Guest
  • | IP XX.XX.129.151
The best thing to do is stay away from anything with a cap!
NOW that the Swiss government have decided to STOP manipulating the chf I'll START trading it!..
Well.. when we establish some trendlines and those ema's catch up I will! -_-
  •  Guest
  • | IP XX.XX.158.216
trading eurchf very simple, buy low sell high
Quoting Alexeii
The best thing to do is - STAY AWAY FROM CHF!!!
Thank you Alexeii, but I need a volatile pair to strengthen my confidence in trading. Staying away is not an option I am afraid.
You will never know what they thinking Ojiego. Trade what you see and not what you think!!
Quoting Ojiego
Thank you Alexeii, but I need a volatile pair to strengthen my confidence in trading. Staying away is not an option I am afraid.
There are plenty of good volatile currency pairs like USD/JPY or GBP/USD, but if you want to burn capitals you are welcome to do it, in the end it's your money.
Could anyone explain to me this article:

"The amount of cash commercial banks hold with the Swiss National Bank rose the most since at least March 2013 last week, indicating the central bank may have intervened to keep the franc down despite scrapping a cap against the euro."

"Sight deposits surged to 365.486 billion Swiss francs last week, up from 339.614 billion francs in the prior week, data from the SNB showed on Monday"

- Why commercial bank hold cash at the SNB ???
- How does it hint that SNB might be intervening ???
Quoting Ojiego
Thank you Alexeii, but I need a volatile pair to strengthen my confidence in trading. Staying away is not an option I am afraid.
One of the most volatile pairs is GBPJPY
You can trade small positions and still make money.
Be aware that JPY is also manipulated, depending upon their whim, and usually when the JPY banks are closed! (I think they use American counterparties....)

....in fact all currencies are manipulated these days, with the possible exception of the US$, as the various governments and CBs struggle to maintain stability.
Carbon-Dioxide: the gas of life!
Quoting Guest
The best thing to do is stay away from anything with a cap!
NOW that the Swiss government have decided to STOP manipulating the chf I'll START trading it!..
Well.. when we establish some trendlines and those ema's catch up I will! -_-
What makes you think that the SNB has stopped manipulating the CHF.
EurChf up over 100 pips since 8am GMT and yet the deposits at the SNB have gone up (which means that somebody is buying CHF).
Carbon-Dioxide: the gas of life!
Quoting Ojiego
Being a Novice in trading, I need to learn how to trade the CHF ...... The difficulty there, is that of knowing what the guys at SNB are thinking, because they come up with one News and do the opposite.... :-( ..... Yes, yes, yes, I know some of you will advise me to stick to my charts but you can't do without news in FX or can you?
If you are not confident enough, the best advice is Don't Trade at All unless you are confident. I.E. Confident with your loss and profit. That's how every trader does it.
I Sincerely thank you all: @Alexeii, @Exodus and @frx.

Now this commentary from Exodus is exactly what I am referring to:
"....in fact all currencies are manipulated these days, with the possible exception of the US$, as the various governments and CBs struggle to maintain stability."
I trade mainly €/$ .

And @frx: I am not a quitter! At least I have the basic education and understanding of the basic principles in the market. As you might know, consistency in trading is what all of us are striving to achieve. If you have done that, good on you, but telling me to quite trading.....? Well, I intend to stay. And mind you, do not equate my "confidence"-saga with "Fear" because I am not afraid. Thank You!
Quoting Ojiego
I Sincerely thank you all: @Alexeii, @Exodus and @frx.

Now this commentary from Exodus is exactly what I am referring to:
"....in fact all currencies are manipulated these days, with the possible exception of the US$, as the various governments and CBs struggle to maintain stability." ....
Ok, this is a rough guide.

When Draghi speaks the Euro goes down. This is because down is the preferred direction at the moment. As soon as there is any talk of easing back on the gas pedal (reduce QE, return all rates to zero) then the market will start looking for reasons to buy the Euro. So unlikely before next year.....

When Yellen/Bernanke speak the US$ go down, until Q4 of 2014. Now the FED has reduced QE to zero, and the market waits to see what happens next and some people are already buying US$. So for now you have to listen carefully to Yellen to see if there is any hint that rates might go up (buy US$) or they consider restarting QE (sell US$).

When Carney speaks he is very carefully saying "we don't know what is happening". So it seems that every time he speaks GBP reverses direction. However there will come a day when enough of their indicators align and there will be a hint that rates will go up, probably he will say something about reducing the balance sheet. That will fire the market to buy GBP.

Most important, remember market is fickle and has a mind of its own. Study the behaviour around news and make your own decision, and if in doubt - stay out.
Carbon-Dioxide: the gas of life!
Quoting Ojiego
And @frx: I am not a quitter! At least I have the basic education and understanding of the basic principles in the market. As you might know, consistency in trading is what all of us are striving to achieve. If you have done that, good on you, but telling me to quite trading.....? Well, I intend to stay. And mind you, do not equate my "confidence"-saga with "Fear" because I am not afraid. Thank You!
I see you are new with only 4 comments. Really? Since when I care about your confident and courage? What do I gain to care least of you?

You know the reason I comment has nothing to do with you. If it is about you, why do I comment in public?

The reason is somebody asked for an advice and I never knew it was you. And you publicly ask for advice, therefore anybody can comment on it. Next time if you don't like anybody to comment, don't put it in public.

And I really don't care about you.
Quoting frx_trader
I see you are new with only 4 comments. Really? Since when I care about your confident and courage? What do I gain to care least of you?

You know the reason I comment has nothing to do with you. If it is about you, why do I comment in public?

The reason is somebody asked for an advice and I never knew it was you. And you publicly ask for advice, therefore anybody can comment on it. Next time if you don't like anybody to comment, don't put it in public.

And I really don't care about you.
well said. How can 1 b confident when he or she doesn't know to control emotion and bounce as a rubber ball thrown on the wall...........
Quoting Alexeii
There are plenty of good volatile currency pairs like USD/JPY or GBP/USD, but if you want to burn capitals you are welcome to do it, in the end it's your money.
Or the end of your money
The best way to trade CHF is without a Stop-Loss... ( just kidding
Too Much Is Never Enough
Quoting Ojiego
Being a Novice in trading, I need to learn how to trade the CHF ...... The difficulty there, is that of knowing what the guys at SNB are thinking, because they come up with one News and do the opposite.... :-( ..... Yes, yes, yes, I know some of you will advise me to stick to my charts but you can't do without news in FX or can you?
Trouble is, you never know what they think. Their last big decision, to remove EUR/CHF peg, was not a scheduled news release. Follow Bruce Lee's old motto here: the best fight is no fight
Eurchf is at the height of unpredictability, and just heard that SNB is not done with the screwing over brokers and traders.
Quoting TraderRaven7
Eurchf is at the height of unpredictability, and just heard that SNB is not done with the screwing over brokers and traders.
Exactly Raven7!
The worst is the side effects of their decisions. I trade mainly EURUSD but their decision on the 11th of January nearly cleared my account. Worst of all, if you have a broker trading against you then you are really screwed!

So, how do we guard against the SNB's unpredictability?
Quoting Ojiego
.....So, how do we guard against the SNB's unpredictability?
Use low leverage.....
Carbon-Dioxide: the gas of life!
Quoting Exodus
Use low leverage.....
OK, thanks Exodus! That's really a good idea!! ...... only my broker has fixed leverages but I am planing to open as many accounts as possible to spread my risks.
Quoting Ojiego
OK, thanks Exodus! That's really a good idea!! ...... only my broker has fixed leverages but I am planing to open as many accounts as possible to spread my risks.
I see that you do not understand the term 'leverage'.

Leverage is your position size divided by your account size.
Carbon-Dioxide: the gas of life!
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  • Posted: Jan 26, 2015 3:26am
  • Submitted by:
     Newsstand
    Category: High Impact Breaking News
    Comments: 26  /  Views: 7,307