EUR/CHF | Page 386 | Forex Factory

Options

Go to
Permalinks
Print Thread

Related Instruments

EUR/CHF

Similar Threads

GBP/CHF and USD/CHF 955 replies

Correlation EUR/USD, USD/CHF, EUR/CHF (Humour me please... Thx) 8 replies

EUR/CHF, USD/CHF turning up? 1 reply

Using usd/chf - eur/usd correlation to see moves in EUR/USD 46 replies

Ranging pairs? EUR/CHF, EUR/GBP, AUD/CAD? 0 replies

Attachments: EUR/CHF
Exit Attachments

EUR/CHF

  • #7,701
  • Jun 13, 2012 2:21am Jun 13, 2012 2:21am
Quoting brinks
It doesnt look like there is going to be any kind of bounce before tomorrows meeting
not unless E/U reaches 1.2600+
  • #7,702
  • Jun 13, 2012 2:24am Jun 13, 2012 2:24am
SNB is not loosing money, the hedgefunds are loosing money,because they hedge with options. They use a very simlple strategy: short EUR/CHF and long call.The only way they lose money is when the price dont move


Quoting siko
I wonder about something. I've been hearing a lot about few things lately but to me they seem to contradict each other:
1) SNB is supporting the floor buying euros at 1.2000 - ok, they said so
2) SNB is dumping euros when possible because they've been buying too much, but very close to the floor (which means they probably sell at about 1.2010/15) - ok, sounds reasonable, they don't want a mountain of euros in their backyard
3) SNB is loosing money supporting the floor - ??? really, and how's that?

Is anyone able to put those three together so...
  • #7,703
  • Jun 13, 2012 2:30am Jun 13, 2012 2:30am
Quoting siko
I wonder about something. I've been hearing a lot about few things lately but to me they seem to contradict each other:
1) SNB is supporting the floor buying euros at 1.2000 - ok, they said so
2) SNB is dumping euros when possible because they've been buying too much, but very close to the floor (which means they probably sell at about 1.2010/15) - ok, sounds reasonable, they don't want a mountain of euros in their backyard
3) SNB is loosing money supporting the floor - ??? really, and how's that?

Is anyone able to put those three together so...
I am with you!

All the press talks about "SNB is loosing money"!
That's bullshit!
The only thing that happens is that they increase the risk.
If the EUR/CHF is still above 1.20 they don't loose anything.

By the way I think they earn money with that strategy:

1. The have the positive swap out of EUR/CHF long.

and

2. They swap the EUR intervention buys to USD, JPY and GBP
And if you compare USD/CHF, GBP/CHF with end of March 2012 they prices are higher and therefor there is a profit in the books of SNB!
  • #7,704
  • Jun 13, 2012 2:43am Jun 13, 2012 2:43am
Quoting siko
I wonder about something. I've been hearing a lot about few things lately but to me they seem to contradict each other:
1) SNB is supporting the floor buying euros at 1.2000 - ok, they said so
2) SNB is dumping euros when possible because they've been buying too much, but very close to the floor (which means they probably sell at about 1.2010/15) - ok, sounds reasonable, they don't want a mountain of euros in their backyard
3) SNB is loosing money supporting the floor - ??? really, and how's that?

Is anyone able to put those three together so...
when SNB diversified its EUR to say USD, GBP, CAD,JPY, they could loose a little.......
  • #7,705
  • Jun 13, 2012 2:46am Jun 13, 2012 2:46am
The problem for SNB now is not loosing money, it is printing too much CHF, 6~7 million/minute
  • #7,706
  • Jun 13, 2012 2:52am Jun 13, 2012 2:52am
if we dont see any move at all today, maybe it means tomorrow's move will be fairly moderate...
  • #7,707
  • Jun 13, 2012 2:53am Jun 13, 2012 2:53am
Quoting tim10167
if we dont see any move at all today, maybe it means tomorrow's move will be fairly moderate...
If any move at all.

I cant believe the SNB havent used this meeting to talk the chf down.

Producer import prices worse than expected but nobody really cares
  • #7,708
  • Jun 13, 2012 2:54am Jun 13, 2012 2:54am
what does everyone think will happen to the pair if pro austerity party wins the Greek election this weekend?
  • #7,709
  • Jun 13, 2012 2:57am Jun 13, 2012 2:57am
Quoting tim10167
what does everyone think will happen to the pair if pro austerity party wins the Greek election this weekend?

Not a lot i dont think the inflows into chf will continue
  • #7,710
  • Jun 13, 2012 2:58am Jun 13, 2012 2:58am
Quoting brinks
If any move at all.

I cant believe the SNB havent used this meeting to talk the chf down.
They will talk down chf tomorrow for sure, but no one will care unless they get serious and bring in policy intervention.
  • #7,711
  • Jun 13, 2012 3:00am Jun 13, 2012 3:00am
Quoting tim10167
what does everyone think will happen to the pair if pro austerity party wins the Greek election this weekend?
SNB will be bid 500 billions at 1.2005!

So I don't think there will be a change.

Concerning all the discussions that they will lower the peg:

I don't think SNB can do that.
Their credibility will be destroyed forever!!!
  • #7,712
  • Jun 13, 2012 3:03am Jun 13, 2012 3:03am
Quoting brinks
Not a lot i dont think the inflows into chf will continue
But we still have Spain and Italy, this will be the next major inflow wave in the near future......
  • #7,713
  • Jun 13, 2012 3:04am Jun 13, 2012 3:04am
Larger greek banks have had combined daily deposit outflows of 500-800 million euros in the last few days.

No wonder this thing cant get up off the floor
  • #7,714
  • Jun 13, 2012 3:26am Jun 13, 2012 3:26am
Dear Sir,

We have just received a response from the dealing room. The EURCHF pair would be available again today.

Best regards,
Support Department
  • #7,715
  • Jun 13, 2012 3:27am Jun 13, 2012 3:27am
I have a feeling that SNB may wants to waite for the Greek election outcome as introducing policy interventions may more or less cause inconvenience for its important financial sector
  • #7,716
  • Jun 13, 2012 3:29am Jun 13, 2012 3:29am
Quoting rcrist
Dear Sir,

We have just received a response from the dealing room. The EURCHF pair would be available again today.

Best regards,
Support Department
No explanation bit strange
  • #7,717
  • Jun 13, 2012 3:35am Jun 13, 2012 3:35am
does the lack of any move today before tomorrow's meeting mean that the specs are totally gone from this pair? If so, looks like we will test 1.2000 again is the SNB does nothing tomorrow.
  • #7,718
  • Jun 13, 2012 3:35am Jun 13, 2012 3:35am
Quoting tim10167
what does everyone think will happen to the pair if pro austerity party wins the Greek election this weekend?
any one seen after election that winning party changes rhetoric fast and dramatically...

but i really don't see a problem with enormous fx reserves (it is a dream of every CB but SNB now) at least loosing fx balances is easy...
(buying loosing bonds italy, spain, greece!!! or just buying and selling fx, bonds stocks.. and loosing the bid ask spread all the time)
so they can reduce reserves at any time

as a problem of to much CHF monetary base SNB can always enlarge min bank reserves in that currency and multiplicator factor does the rest

this all stuff is to weird...
  • #7,719
  • Jun 13, 2012 3:37am Jun 13, 2012 3:37am
Quoting sdpadres
does the lack of any move today before tomorrow's meeting mean that the specs are totally gone from this pair? If so, looks like we will test 1.2000 again is the SNB does nothing tomorrow.
The SNB killed off any potential spike by saying the floor wont be raised
  • #7,720
  • Jun 13, 2012 3:57am Jun 13, 2012 3:57am
Hilderbrand just got a new job :

http://finance.yahoo.com/news/former...GlvbnM-;_ylv=3
4 traders viewing now