Good economic news means nothing new to Switzerland now. SNB is used to it & the eurchf pair do not react with economic news anymore.
Only unexpected CPI data & SNB rumors & intervention will strongly move this pair.
SNB is most concern on price stability - watch CPI.
They are also watching (but not so concern about) the economy I think. So KOF, ZEW, GDP don't get in the way for their peg/monetary decision.
heard some hedge funds and investment banks stopped trading this pair as going no where. good for us longs.......as when real money starts to flow back out to EU, no one can stop them....
The Danish krone slumped Friday to an eight-month low against the euro as the market continues to digest the Danish central bank's move to deflect inflows with its first ever negative deposit rate.
The Danish krone slumped Friday to an eight-month low against the euro as the market continues to digest the Danish central bank's move to deflect inflows with its first ever negative deposit rate.
Jordan, did u see this news?
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I don't know why they haven't bought in negative rates already
SNB's still printing 'unlimited' CHFs to buy EUR... I think they will only use negative rates as a last resort & this is not likely to happen anytime soon.
Jordan will wait & see what will happen to Denmark first. They have 2mths to do that.
I think by the next monetary policy meeting on 15 Sep, if Denmark is successful, then they may announce the same.
SNB's still printing 'unlimited' CHFs to buy EUR... I think they will only use negative rates as a last resort & this is not likely to happen anytime soon.
Jordan will wait & see what will happen to Denmark first. They have 2mths to do that.
I think by the next monetary policy meeting on 15 Sep, if Denmark is successful, then they may announce the same.
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Capital controls are a last resort.
Negative rates the next step and why wait to see how Denmark get on they already said that Sweden have used 0.5 negative rate and didn't have any adverse affect.
Negative rates the next step and why wait to see how Denmark get on they already said that Sweden have used 0.5 negative rate and didn't have any adverse affect.
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Yes, forgot about Sweden...
Jordan, act quickly! Your foreign reserves in your pressure cooker is going to explode.
Swiss Franc Fight Growing Costly for SNB According to Reserves Update
"We have known that the SNB’s effort to stem the franc tie hasn’t been going very well – not difficult to interpret given the EURCHF’s refusal to
rise from 1.2000. Yet, nothing puts the situation into better perspective than seeing the amount of funds put into the effort. The central bank
released its May FX reserves. Is the 20 percent increase over the month to a record 365 billion francs enough to encourage a fresh policy
approach? Buying an unlimited amount of euros as a regional crisis intensifies hardly seems a viable strategy."
I think soon we will see some decisions from SNB, following of course by some action. Even in this moment, many are seeing EUR/CHF at 1.22 by the end of this year...remains 5 months and a half to watch and see.
Speculation converts one man's capital into another man's income
Linda Yueh@lindayueh
Economy Minister to SonntagsZeitung: #SNB should keep franc cap, skeptical about negative interest rates but examine it
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Danish krone back up a little bit on Saturday, looks like negative interest rate not that effective as Minister said, need stronger tools stronger tools......
looks like SNB will introduce some sort of measure in the short term.....EU problems just not going away...
"However, he (Schneider-Amman) said imposing capital controls would probably not help much, including negative interest rates on foreigners' Swiss franc deposits at Swiss banks.
"In the past, there were such attempts. Looking back, the impact wasn't really very big, less big than desired at least. That's why I'm sceptical. But we're examining these measures, which means we're analysing what speaks in favour and against."
"But we're examining these measures" is at least an improved tone compared to when they said "we have further measures ready but no need to implement them now" a few weeks ago.....
hope ECB will cut rate again in August to pressure more on SNB
Danish krone back up a little bit on Saturday, looks like negative interest rate not that effective as Minister said, need stronger tools stronger tools......
looks like SNB will introduce some sort of measure in the short term.....EU problems just not going away...
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I agree the EU problems are not going away.
But looks like the Swiss are ruling everything out apart from spending billions to hold the floor
