When the correlation ends with eur/usd, this pair will sleep again. Right now, the $ is having a major rebound against most pairs for the last 4 days.....Euro is pulling back..which is normal to me after riding it from 1.23. Nothing is a straight line. 1.2080 seems to be good support at the moment for e/chf. For now..im using the pullback as an opportunity to look for levels to add to my position. Ill post my chart again after if I add.
- #9,830
- Edited 2:41am Sep 24, 2012 2:29am | Edited 2:41am
Deposits increased 0,4 bln last week, I think we can conclude that SNB printing finished
CHF weakens on its own, the pair woke up
for what reason do you think these 0.4 bln had been printed? So SNB is still taking EURO's? At least less, than before... i was expecting a drop in sight deposit. in this environment it could have been happened.
where do you find these sight deposits figures?
- #9,833
- Sep 24, 2012 5:34am Sep 24, 2012 5:34am
- | Joined Dec 2006 | Status: o_O | 1,511 Posts
Deposits increased 0,4 bln last week, I think we can conclude that SNB printing finished
CHF weakens on its own, the pair woke up
By Matthias Wabl
Sept. 24 (Bloomberg) -- Sight deposits of domestic banks
with the Swiss National Bank fell to 292.3 billion Swiss francs,
compared with 294.2 billion a week earlier, according to the
bank’s website.
ALSO
By Simone Meier and Jana Randow
Sept. 24 (Bloomberg) -- The Swiss National Bank probably
parked some of its cash holdings with Germany’s Bundesbank to
reduce risk on the record currency reserves it has accumulated
to prevent the franc from appreciating, according to Credit
Suisse Group AG.
The CHART OF THE DAY shows that SNB deposits at central
banks, the International Monetary Fund and the Bank for
International Settlements have risen in tandem with Bundesbank
liabilities to non-euro region members since May after
speculation of a euro breakup intensified. While the Bundesbank
pays zero interest on deposits, in line with European Central
Bank policy, Germany is one of only four euro-area countries
with an AAA credit grade from the three major ratings firms.
“The SNB had to massively intervene in May, June and July
and it probably wanted to limit investment risks,” said Maxime
Botteron, an economist at Credit Suisse in Zurich. “They
probably preferred shifting cash holdings to the Bundesbank at
zero interest as a sort of safe haven. Now that the situation
has improved, cash holdings will probably decline again.”
The SNB’s holdings of foreign currencies reached a record
418 billion francs ($449 billion) in August as policy makers
purchased euros to defend the franc’s 1.20 ceiling, introduced
in September 2011 to limit damage to exports and growth. Upward
pressure on the Swiss currency, seen as a haven in times of
turmoil, eased after the ECB announced plans for an unlimited
bond-purchase program on Aug. 2.
The SNB parked 95.2 billion francs at central banks, the
IMF and the BIS at the end of July, up from 15.6 billion in
April, latest data show. Bundesbank liabilities rose to 90.9
billion euros ($118 billion) from 14.2 billion euros.
The SNB doesn’t give details on its holdings with other
central banks. The Bundesbank declined to comment.
