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  • #9,221
  • Aug 27, 2012 3:44am Aug 27, 2012 3:44am
Quoting brinks
So is that a little bit more than the week before?
yes, interesting because when ECB will impose an upper limit for Italy and Spain bond yields making them sustainable in longer run (no default spiral) there will be no sense to hold negative yield assets. maybe we have to wait for that. just heard that this can come after german high courd decision on esm.
  • #9,222
  • Aug 27, 2012 4:09am Aug 27, 2012 4:09am
Quoting pipxster
yes, interesting because when ECB will impose an upper limit for Italy and Spain bond yields making them sustainable in longer run (no default spiral) there will be no sense to hold negative yield assets. maybe we have to wait for that. just heard that this can come after german high courd decision on esm.
Yes hopefully something is done which will allow this to move up rather than just spike
  • #9,223
  • Aug 27, 2012 4:42am Aug 27, 2012 4:42am
Quoting pipxster
5,4Bln CHF has been printed last week
From 280,59 to 286,38 itīs rather 5,79 than 5.4 ?

Were the low amounts of the past weeks only due to holiday season?
  • #9,224
  • Aug 27, 2012 5:09am Aug 27, 2012 5:09am
Quoting didi_doedel
From 280,59 to 286,38 itīs rather 5,79 than 5.4 ?

Were the low amounts of the past weeks only due to holiday season?
I'm not sure the reason for the fall is all holiday season related
  • #9,225
  • Aug 27, 2012 6:16am Aug 27, 2012 6:16am
Quoting didi_doedel
From 280,59 to 286,38 itīs rather 5,79 than 5.4 ?

Were the low amounts of the past weeks only due to holiday season?
Im always checking "total sight deposits" data that includes "other sight deposits" in non-domestic banks too.

The exact difference is 5,436 BLN today. Anyway both methods give the relevant infomation.
  • #9,226
  • Edited 8:24am Aug 27, 2012 8:13am | Edited 8:24am
SNB ‘s Jordan: Absolutely necessary to maintain franc ceiling
Written by Jamie Coleman
August 27, 2012 at 12:41 GMT
Franc cap has stabilized Swiss economy
Introduction of franc ceiling was necessary
The peg is in place at the moment, with EUR/CHF at 1.20101/102

Same old same old.

I don't know when he said this.At least it shows commitment to the floor.any real positive steps in Europe should help this up.



SNB’s Jordan: May make request for capital buffer in 2013: Bloomberg
Written by Jamie Coleman
August 27, 2012 at 13:23 GMT
Presumably to offset the cost of carrying the world’s largest long EUR/CHF position…
  • #9,227
  • Aug 27, 2012 9:30am Aug 27, 2012 9:30am
DJ SNB Jordan: Not Giving The All-Clear On Swiss Housing Market
27-Aug-2012
(MORE TO FOLLOW) Dow Jones Newswires

August 27, 2012 09:27 ET (13:27 GMT)

* DJ SNB Jordan's Comment Refer To Decision Not To Activate Capital Buffer
(MORE TO FOLLOW) Dow Jones Newswires

August 27, 2012 09:28 ET (13:28 GMT)

* DJ SNB Jordan: Monitoring Housing Market Very Closely
(MORE TO FOLLOW) Dow Jones Newswires

August 27, 2012 09:29 ET (13:29 GMT)

* DJ SNB Jordan: Banks Are Aware Of Mortgage-Market Risks
(MORE TO FOLLOW) Dow Jones Newswires

August 27, 2012 09:29 ET (13:29 GMT)

* DJ SNB Jordan Comments From Interview With Swiss TV Ended
(MORE TO FOLLOW) Dow Jones Newswires

August 27, 2012 09:30 ET (13:30 GMT)

DJ SNB Jordan: Not Giving The All-Clear on Swiss Housing Market
ZURICH (Dow Jones)--The Swiss National Bank is closely watching developments in the housing market, SNB Chairman Thomas Jordan, even as the central bank refrained Monday from asking Swiss banks to raise additional capital to protect themselves against a sudden downturn.

"We are not giving the all-clear," Mr. Jordan said in a video-extract from an interview to be aired on Swiss national television later Monday.

The SNB continues to look closely at developments in the Swiss residential real-estate and mortgage markets and doesn't exclude asking banks to hold more capital later. However, such a call probably wouldn't come before early next year, Mr. Jordan said.

In June, the Swiss government announced the implementation of a countercyclical capital buffer, a pre-emptive measure that requires banks to build up capital gradually as imbalances in the credit market develop.

The SNB regularly assesses the need to activate the buffer.

Signs of overvaluation remain in certain regions and segments of the residential property market, the SNB said. The bank added that there were also some indications of a possible slowdown in the second quarter.

Write to [email protected]

(END) Dow Jones Newswires

August 27, 2012 10:06 ET (14:06 GMT)

Related News
  • #9,228
  • Aug 27, 2012 9:35am Aug 27, 2012 9:35am
http://snbchf.com/2012/08/snb-not-at-jackson-hole/
You can lose your shirt if your buttons are loose.
  • #9,229
  • Aug 27, 2012 9:47am Aug 27, 2012 9:47am
* DJ SNB Jordan: Currently The Minimum Exchange Rate Is Right Policy
* DJ SNB Jordan: Exit From Minimum Exchange Rate Not An Issue Currently
27-Aug-2012

* DJ SNB Jordan: Minimum Exchange Rate Is An Extreme Measure

* DJ SNB Jordan: Euro Floor Vs Swiss Franc Isn't For Eternity
  • #9,230
  • Aug 27, 2012 10:14am Aug 27, 2012 10:14am
SNB Jordan: Abandonment of Minimum Exchange Rate Not Being Considered

ZURICH--The Swiss National Bank won't abandon its policy of intervening in currency markets to prevent the euro from falling under 1.20 Swiss francs, central bank President Thomas Jordan said Monday.
'The minimum exchange rate is an extreme measure for an extreme situation, it isn't for eternity,' Jordan said in an extract from a video interview to be aired Monday on Swiss national television.
Asked if the SNB has an exit scenario, Jordan said: 'At present, this isn't under debate, it is the right monetary policy for the challenges we are currently facing,' he added.
Jordan reiterated the SNB is willing to defend the floor, even if it were to suffer losses on the foreign exchange reserves it's building up due to its efforts to prevent the franc from rising.
The Swiss National Bank imposed the euro-franc floor on September 6, 2011, as its tried to provide relief for the Alpine country's hard-pressed exporters, and to head off the risk of deflation, after the franc a year ago had surged to near parity with the currency of the euro zone, its biggest trade partner.


(END) Dow Jones Newswires
August 27, 2012 11:12 ET (15:12 GMT)
  • #9,231
  • Aug 27, 2012 10:58am Aug 27, 2012 10:58am
I would like to know the thoughts of anyone who is short this pair
  • #9,232
  • Aug 27, 2012 11:09am Aug 27, 2012 11:09am
Quoting brinks
I would like to know the thoughts of anyone who is short this pair
I think the only option for somebody to short this pair could be to consider that the euro will fail itself.
The peg will never be lowered as it would be suicide for themselves.

I'm still holding all my longs...
  • #9,233
  • Aug 27, 2012 11:29am Aug 27, 2012 11:29am
Quoting Napoleon180
I think the only option for somebody to short this pair could be to consider that the euro will fail itself.
The peg will never be lowered as it would be suicide for themselves.

I'm still holding all my longs...
Me too I just wondered what the sellers are doing
  • #9,234
  • Aug 27, 2012 11:57am Aug 27, 2012 11:57am
Quoting brinks
Me too I just wondered what the sellers are doing
The sellers are probably scalping 1-2 pips when the pair rises to 1.2012 then drops down a little. And they know it is perfectly safe to do so until 2 days prior to Oct 14th's SNB's monetary policy.
  • #9,235
  • Aug 27, 2012 12:01pm Aug 27, 2012 12:01pm
Quoting alaneth
The sellers are probably scalping 1-2 pips when the pair rises to 1.2012 then drops down a little. And they know it is perfectly safe to do so until 2 days prior to Oct 14th's SNB's monetary policy.
Agreed yes not much different to the longs everyone is waiting,waiting,waiting.
  • #9,236
  • Aug 27, 2012 1:08pm Aug 27, 2012 1:08pm
Nobody thinks it's weird that SNB will not be at Jackson Hole?
You can lose your shirt if your buttons are loose.
  • #9,237
  • Aug 27, 2012 1:39pm Aug 27, 2012 1:39pm
Quoting Scooby
Nobody thinks it's weird that SNB will not be at Jackson Hole?
Weird probably yes but it doesn't mean they are going to remove the floor
  • #9,238
  • Aug 27, 2012 2:04pm Aug 27, 2012 2:04pm
Quoting brinks
I would like to know the thoughts of anyone who is short this pair
It's perfectly clear that Jordan can't discuss any exit options.

It's also clear that SNB already incurred big losses, since there is no buyer for their EUR at a rate of 1.20. Exchanging EUR against USD is reasonable to reduce losses in the short term, but without the peg, nobody would exchange CHF against the QE-currency.

Given this scenario he is not in a driving position any more and continues to accumulate non-realised losses at the mercy of the markets.

The "Not for eternity" is wishful thinking that EUR/CHF may rise. If this rise does not happen, how does he want to implement "not for eternity" ??

It's like a poker game bluff where one is always doubling instead of quitting the game.

But market players know that his hands are empty in the sense of: he can't force anybody to give him CHF back for EUR at 1,20.

So if anything goes wrong with his policy (inflation, EZ crisis intensifies, countermeasures by other national banks ...) he is dead.

Putting an economy with 3% unemployment rate and large trade surplus in such dangers is simply stupid game to play.
  • #9,239
  • Aug 27, 2012 2:16pm Aug 27, 2012 2:16pm
Quoting didi_doedel
It's perfectly clear that Jordan can't discuss any exit options.

It's also clear that SNB already incurred big losses, since there is no buyer for their EUR at a rate of 1.20. Exchanging EUR against USD is reasonable to reduce losses in the short term, but without the peg, nobody would exchange CHF against the QE-currency.

Given this scenario he is not in a driving position any more and continues to accumulate non-realised losses at the mercy of the markets.

The "Not for eternity" is wishful thinking that EUR/CHF may rise. If this rise...
Thanks didi
I don't pretend to know to much just wanted to get a sellers thoughts.
From my point of view it seems more dangerous to be short than long.
  • #9,240
  • Aug 27, 2012 2:27pm Aug 27, 2012 2:27pm
Quote
Weird probably yes but it doesn't mean they are going to remove the floor

I wasn't suggesting raising or removing the floor. Just that all the other central bankers will be there and that they usually are, too.

Gotta mean something.
Can't help but wonder what.
You can lose your shirt if your buttons are loose.
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