EUR/CHF

He said he wont go against SNB when he was in Davos, Swiss early this year.

I think he knows this is totally different from when he was betting on Bank of England. Bank of England needs to use limited foreign reserve to defend, not printing unlimited GBP.

SNB’s Jordan: Negative rates not excluded in crisis

Written by Jamie Coleman
July 2, 2012 at 14:12 GMT

1. Doesn’t expect euro area to collapse
2. Doesn’t expect Greek exit from euro

They are now starting to talk a bit

+ looks like we're getting out of "the range" interesting

our conservative professor warming up...:

* DJ SNB's Jordan: Value Of Franc Still "Very Strong" at 1.20
* DJ SNB's Jordan: Fair Value Of Franc "Considerably Above" CHF1.20 vs Euro
* DJ Jordan: Won't Rule Out Capital Controls, Negative Rates If Crisis Worsens


* DJ SNB's Jordan: Welcomes EU Summit Decisions - Report
* DJ SNB's Jordan: Banking Union Would Be Quickest Way To Deepen Integration
* DJ SNB's Jordan: Ready To Defend Franc-Euro Exchange Rate With Unlimited Purchases
* DJ SNB's Jordan: Value Of Franc Still "Very Strong" at 1.20
* DJ SNB's Jordan: Fair Value Of Franc "Considerably Above" CHF1.20 vs Euro
* DJ Jordan: Won't Rule Out Capital Controls, Negative Rates If Crisis Worsens
* DJ SNB's Jordan: Don't Expect Greek Exit, Euro Zone Break-Up - Report

DJ SNB's Jordan Won't Exclude More Measures To Prevent Franc Rise-Report
The Swiss National Bank won't exclude drastic measures like capital controls or negative interest rates to prevent the franc from rising against the euro, should a worsening of the European crisis lead to massive safe haven inflows, the central bank's Chairman said.

"However, I would like to stress, that we expect neither that Greece will leave the euro zone, nor that the currency union will break apart," Thomas Jordan told German daily Handelsblatt, according to an advance copy of an interview to be published Tuesday.

The Swiss franc has been relatively stable against the euro since September, after the Swiss National Bank imposed a floor of 1.20 Swiss franc per euro to keep appreciation in check and provide some relief to exporters. Since April, the SNB was forced to sell francs to defend that level and its foreign currency reserves increased markedly as a result.

Jordan said in the interview that the franc is still very highly valued at this level.

"The fair value (in the franc to euro exchange rate) lies markedly above this minimum exchange rate," Mr. Jordan said.

Write to [email protected] and [email protected]

(END) Dow Jones Newswires

July 02, 2012 09:43 ET (13:43 GMT)

"The Swiss National Bank won't exclude drastic measures like capital controls or negative interest rates to prevent the franc from rising against the euro, should a worsening of the European crisis lead to massive safe haven inflows, the central bank's Chairman said."


So if theres more or too much money printing then no floor break but capital controls or negative interest rates.

Any other interpretation?

The Swiss franc is valued too highly on the foreign exchange markets despite the central bank's intervention, Swiss National Bank chief Thomas Jordan was quoted on Monday as saying.

http://in.reuters.com/article/2012/0...8DR00Z20120702


Bla bla bla bla bla! the same old words. They talk to much but they don't do anything

Whats interesting is the little move up is not being sold off as fast as before

No other interpretation. SNB is not beating around the bush, they are straight to the point. I don't see any other more straight forward central bank. They mean what they say & they are good at giving early hints of their intention.

The recent EU breakthru last Fri will put pressure off EU banks, but it is still too early to see a backflow of funds out of CH.

Jordan's comment today is also as expected - no surprises. I believe SNB looks mainly on CPI for their monetary policy and KOF / Retail sales as secondary data. They are so very afraid of deflation related recession.

So just hang on there, sleep well and wait for Friday CPI.

You are right. Getting slower down now, but it will definately go down again slightly below 1.2010 this week.

I'm setting my buy limit levels from 1.2012 down to 1.2009. Going to hook one soon...

Next game is Friday's CPI.

How you guys think the possible ECB rate cut would affect EURCHF?
This would also mean a cut in the swaps for long positions...

Daily volume is now (since friday) as high as it was last time in march before.
There is indeed some pressure to the upside - will getting harder for seller to push price down I think.

I'm very afraid of this. It won't budge the pair I think, but it will affect my carry trade strategy. There are still a few good brokers around with +ve swap on long, but this will greatly reduce the swap, or even worse, they take the opportunity to zero or -ve it.

The german constitutional court (like supreme court in America) will negotiate on the 10th of July about the ESM laws. So it could possibly move markets if they decide that those laws are against the german constitution. Let's see...

The sellers are coming in now though

SNB afraid of inflation

http://www.zerohedge.com/news/swiss-...bank-faking-it

If EUR rate > CHF rate, it should be positive. If it's equal then it will be zero.
Now EUR rate is 1% and CHF < 0.25%. If they will cut, EUR rate will be 0.50% and still higher than CHF rate and of course the swap should be around "half".

Yep, they try every day to close the daily candle (bid) below 50 (red line) and 30 (green line) SMA...

could it be SNB?

Switzerland’s President Eveline Widmer-Schlumpf:

The Swiss government “is prepared for the worst, but I don’t think we have to do that.” Inflation would be the only restraining factor on the SNB’s intervention and “if we would have inflation I think they would have to stop that.”

I don't see the point. holding back ammunition for defending the peg with real FX-Intervention is not that bad as an idea. How should Switzerland reduce inflation? By rising interest-rates? Don't think so at the moment... Holding 1.20 (eventually raising it) and in-deflation around 0 is the goal.