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| Europe |
| FX implodes? |
| 2010-06-08 |
| One important development two important articles. The Swiss National Bank came into the FX market again today after the E/CHF broke another critical milestone of 1.38 Tyler Durden did a piece and discussed how quickly the benefits of the intervention evaporated. He pointed to the fact that in less than two hours the E/CHF was below the intervention levels. JPM wrote a report that summed up the critical issues. Their report was very bearish for the E/CHF. Their argument is that the Swiss have now spent 1/3 of GDP in currency intervention and they have accomplished nothing. The conclusion is that the Swiss will be forced to stop and let the Euro to float to a much lower level. |
| Posted by:tipper |
| #5 Barb, It should have said annual GDP. If the Swiss annual GDP is 300 billion Swiss Franc, then they have sold 100 billion Swiss Franc to buy the Euro equivalent of 100B Swiss Franc. |
| Posted by: phil_b 2010-06-09 00:02 |
| #4 Here's a little help - "E/CHF" refers to the Euro-Swiss Franc exchange rate - CHF symbolizing the Swiss Franc. W/o reading the article, it seems the Swiss are trying to preserve a certain level of that exchange, but it seems to be failing. All that said, I need to figure out who's weaker here - I suspect it's the Euro that's failing, which adversely affects Swiss exports. |
| Posted by: Halliburton - Mysterious Conspiracy Division 2010-06-08 22:10 |
| #3 "The Swiss National Bank came into the FX market again today after the E/CHF broke another critical milestone of 1.38" Can anybody explain this? (I did get the part about 1/3 of their GDP.) |
| Posted by: Barbara Skolaut 2010-06-08 21:55 |
| #2 "The first rule of Fight Club is we don't mention the E/CHF!" |
| Posted by: Frank G 2010-06-08 21:23 |
| #1 Sticking feathers up your butt does not make you a chicken. -Tyler Durdan |
| Posted by: swksvolFF 2010-06-08 21:17 |