financial storm in Switzerland, the franc flies!

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financial storm in Switzerland, the franc flies!




by Christophe » 15/01/15, 13:53

Waaaw, the Swiss franc takes + 30% in a few minutes !! This morning!

In a terse statement issued Thursday morning, the Swiss National Bank (SNB), in charge of the country's monetary policy, announced that the floor rate of the Swiss franc, set 3 1,20 ago at 1 for XNUMX was abandoned . In addition, the negative rates applied to large deposits in Swiss francs to discourage speculators are weighed down.

Immediately, the Swiss franc, now freewheeling, went out of control and appreciated by almost 30% against the euro or the dollar.

In London, the Swiss franc traded at 10h00 GMT to 0,85 CHF for 1 euro, instead of 1,20 CHF for 1 euro before the BNS announcement. (...)


http://www.boursorama.com/actualites/la ... %5BTwitter
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by Obamot » 15/01/15, 19:11

Arf, they waited for the right moment to drop the Euro, it cost bombon to the Confederation : Cheesy: Predictably:

Image

Since the SNB kept the Swiss Franc at an artificially low level by buying around 100 billion / year to support exports (it of course caught up with the exchange rates).

Well seen and when no one expected! And while the weakening of the European currency had reached a floor (it has lost 15% of its value against the dollar since the month of April 2014). This is due to several reasons, including the Paris attacks, the early elections in Greece that are causing fears and the monetary easing program of the European Central Bank that makes the euro less attractive to investors!
Source: Le_Time.

Then fall the attacks and the fact that it was predictable that the Swiss Franc bounds. Hence my assumption, the fact that for the SNB, sell massively euros will have caused its abrupt fall and instead the rise of the franc:

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It is an understatement if they rushed to liquidate the immense stock of European currency in the wake and this little before the exchange rate does not move! That is to say to get rid of it as soon as the terrorist attacks were announced but before it had an impact on the market, which also caused the dollars to rise a little higher than the Euro at one point (1 US $ = 1 CHF but 0,84 CHF for 1 € at that time, I believe ...) for me this is what provoked the decision. Thus, they sell their euros, which fall, to buy back immediately behind: they have won twice! And no insider trading, it's the SNB! So if I calculate correctly, that's 30% + ~ 20% behind ...;) If they played finely, out of at least 70 billion it's a "good" move! As this is an annual average, it remains to be seen how much there was in the bank in total! (Even if I could be wrong ... I think they did a "good" operation, and the opposite for the sidewalk opposite ...)

By cons it will not arrange our exports: the party is over, but it's been a few years since the secondary sector was preparing for 3ans! So the impact will be minimal.

Mebon, the Swiss franc lost too much against the dollars. Long live the billboard!
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by Christophe » 16/01/15, 15:05

Funny consequence http://www.romandie.com/news/Le-taux-de ... 555458.rom

The system is crazy ...
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by Obamot » 16/01/15, 16:46

Another game of goatee:

It is a strategy to ensure that the Swiss franc adopts a low profile (to avoid an undesirable amplifying / attracting effect which would have the consequence of pushing the Swiss franc even higher against the Euro (it's like that I understand it).

Another measure that produces such effects is to run the billboard. But curiously the article does not speak about it ...

What I said above about the price of the US $ yet appears here:

15.01.2015 Morning wrote:The euro fell against the dollar on Thursday 15 January, falling a time to a low in eleven years, a collateral effect of its debacle against the Swiss franc after the Swiss National Bank (SNB) upset the market by removing its floor rate.

By 20 hours, the single European currency was worth 1,1629 dollar, against 1,1782 dollars Wednesday to 23 hours. The euro fell to 17hours at 1,1568 dollar, its lowest level since mid-November 2003.


The main reason would be that the SNB would take into account the risk that Europe is preparing to buy back massive amounts of rotten cash (debts of states in difficulty). And for that to turn the printing press leading to a "collapse" of the Euro.

Because if Switzerland continued the same policy of "compatibility with the euro zone", it would be a little as if it were going to buy back the debts of France, Greece, Italy, Portugal, etc.

Far too expensive my son ...! : Cheesy:
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by Obamot » 16/01/15, 22:06

Mix & Remix: from "hoarding to terrorizing"

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by moinsdewatt » 17/01/15, 14:08

Un must read to understand the considerable evolution of the Swiss Franc in recent days compared to the € and the link with the future European QE

http://www.bilan.ch/myret-zaki/redactio ... vait-choix

found on forum bubble immo.
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by Obamot » 17/01/15, 16:22

Thank you for the link.

Myret Zaki Bilan wrote:It is indeed the day before yesterday that the Advocate General of the Court of Justice of the European Union (CJEU) confirmed that the monetary easing program (QE) of the European Central Bank (ECB) is "in line with the European law under certain conditions ". According to him, this program, which allows the ECB to buy bonds of member states of the euro area, is "necessary and proportionate"

Which is tantamount to saying that if Switzerland had continued to maintain a floor rate, it would have begun to endorse European debt despite it!
That's what I said above.

Pierre Leconte, an economist interviewed by Bilan.ch the 12 January, had also correctly anticipated this factor: "If the Court says that this operation is consistent, then Mario Draghi, the governor of the ECB, will have no more obstacles, and there a sharp fall of the euro is to be expected, and perhaps a parity against the dollar.

For my part, I just lost on what I had in my pocket in euros, to go shopping on the other side of the border, ie peanut : Cheesy: (I mean in relation to the restoration of a preferential exchange rate of a strong franc, it has nothing to do ...)

On the other hand, the SNB's negative rates offer more advantages than disadvantages!

They are cool these Swiss, they complain to death when all is well for them! : Cheesy: 8) : Mrgreen:
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by Christophe » 23/01/15, 17:34

Soaring Swiss franc, a social bomb in Eastern Europe: http://www.courrierinternational.com/ar ... e-de-l-est
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by Obamot » 23/01/15, 18:45

Hey! It is a collateral damage of the ECB, not the Swiss National Bank! (And upstream of the crack of 2008).

And beware, they lost down but could have won even if the Euro was up!

But you must be bastard to offer mortgage loans in a currency stronger and more stable than the currency of the contract country. And crazy to accept what is presented as a benefit (but for creditors only ...) while for debtors, nothing like burning! Moreover the case could be in other configurations for these! If we admitted that the SNB had never set a floor rate, the current collapse of the euro would have had the same effects for them! On the other hand, if the euro was up to 1,60 CHF for 1 euro (as was the case before 2008) and well these people would have finished paying their house at -37,5% than the expected rate (they played, they lost ?)

But then if there are unscrupulous brokers who did that, it has nothing to do with the SNB's decision, since it only anticipated a decision (which was just then ten days later) to run the printing press to buy eurozone debt. Switzerland, a tiny country with a very small money supply compared to the euro zone, could have imploded economically. The last month of 2014, Switzerland had spent 100 billion euros to maintain a floor rate and support the economy to promote exports. Knowing that the euro area intends to inject 100 billion euros per month ° _O Image it would have doubled the bet. So it was either the felling of the cards, or continue the bluffing! And the pot was not in favor of the ECB, the market punished the euro by putting it on the carpet!

Today the European press praises Mario Draghi (formerly of G&S) of "super-indebted-Europe", without asking the question whether he had not warned his former employers! (But we knew that as soon as it was chosen, we had already talked about it here!)
http://tempsreel.nouvelobs.com/economie ... bords.html
Nor how will Europe repay! I dare not even think of the following, the debt will have to end up paying for it ...

So much has been said about the reckless - and even captives by their own blunder - who have lost on the exchange rates, but not those who have won!
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by plasmanu » 24/01/15, 19:12

45 days at the hosto for a crushed pond.
Beeeee
Ha the galley - I Nike the social security hole ....
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