Posts Tagged: Swiss Franc

Today is an extraordinary day for the trading market as the Swiss National Bank has taken the decision of drastically intervening on the nation’s currency. Due to the problems in the European Union, and especially to the fact that the trader’s sentiment has once more shifted as the news related to the election in Germany has been released, the Swiss National Bank has taken the decision of establishing a floor in the EUR/CHF trading rate. This measure has been unpredicted as the Swiss Finance Minister has talked about the situation of the country’s currency last week, announcing that there is no reason why the SNB should intervene in order to prevent the national currency from growing against all its major counterparts, but especially against the Euro.

Despite this fact, the Swiss National Bank announced today the need for a very drastic measure. In order to protect the national economy from the incredibly fast appreciation of the country’s Read more »

This has been the second week in a row during which the Swiss Franc has been losing territory against most of its major counterparts due to the interventions made by the Swiss National Bank. This weakening has to do with the prospects of peg of the currency to the Euro which has managed to reduce the interest of traders for the Swiss Franc as a safe-haven currency.

The previous week started bad for the Swiss Franc, which continued to lose ground against all its major counterparts, giving thus the impression that the entire week will be one of continuous losses of the currency, showing that the intervention of the Swiss National Bank is actually effective. But, this trend has reversed after the moment when, on the 17th of August, when the Swiss National Bank announced its decision of imposing yet another intervention on the currency, but when the policy makers at the SNB did not mention anything about Read more »

Despite the intervention from the SNB, the Swiss Franc continues to follow an ascendant trajectory on the trading market. This is strongly related to the fact that the markets are very volatile at the moment and to the fact that lots of the world’s stocks have fallen today, bringing new concerns on the evolution of the economic situation of the world. On these bases, it is only normal that the Swiss Franc started to rally against most of its major counterparts and managed to score new record highs against most of them, especially against the US Dollar, which continues to be faced with uncertainty.

The recent downgrade of the US credit rating value from AAA to AA+ has made investors no longer trust the US currency. This is why the Forex traders decided that it is no longer a sure bet to invest in risky currencies and, after the downgrade on Friday; the US Dollar is seen Read more »

After the intervention of the Swiss National Bank on the Franc yesterday, the Bank of Japan had a similar intervention on the Yen today, causing it to drop against all the currencies on the trading market. The most aggressive fall of the Yen was that against the US Dollar, which can be compared with the drop that took place in October 2008. The Yen also reached the lowest level since 11th of July in its race against the Euro, while, when it comes to the Great Britain Pound, the level of the Yen dropped to below the lowest level which has been registered on the 5th of July. The intervention of the Bank of Japan intended to hold down the appreciation of the country’s currency “…to enhance monetary easing by increasing the total size of the Asset Purchase Program by about 10 trillion yen2 from about 40 trillion yen to about 50 trillion yen.”

The Forex analysts Read more »

The previous weeks have brought the Swiss Franc a remarkable growth due to the fact that it is the only safe-haven currency which is not confronted with problems. The US Dollar continues to be in a crisis, despite the fact that a temporary measure has been taken in order to save the US economy, while the Japanese Yen still recovers from the earthquake and tsunami’s consequences. This has made the Swiss Franc the most reliable safe currency in the world, which has caused it to grow unpredictably much, bringing thus problems to the businesses in the country as this growth was not supported by the economy. But today the situation came somehow back to normal as the Swiss Franc started to loose of the gained territories against its major counterparts.

This means that today the Swiss Franc decreased from its record levels against most of its major counterparts due to the fact that the Swiss Central Bank decided Read more »

The previous weeks have brought huge gains for the Swiss Franc. But apparently the ascendant lane is not yet to be finished as the Swiss currency has managed once more today to register record highs against most of it major counterparts. This is related to the fact that the US finds itself in a difficult situation due to the debt-lifting measures which threaten to weaken the global economy, managing to push down the demand for unsafe currencies. As the Swiss Franc manages once more to prove its reputation as the safest currency on the market, it has known a very fructuous period lately, with all the problems in the US and in the European Union.

The Swiss Franc has reached new historical highs against the US Dollar and the Euro today. The currency has also managed to reach the maximum level in 3 years against the Japanese Yen. As most of the traders around the world are expecting Read more »

The overnight trading session brought no changes to the situation of the Euro which remained under pressure. Due to this fact, the European currency fell so much as to reach other all-time low against the Swiss Franc. The 17-nation currency also decreased considerably against the Japanese Yen and the US Dollar. This is the result of the incapacity of the European finance ministers of reaching a resolution on the ways in which they can prevent the aggravation of the debt crisis in the currency bloc. Based on these facts, the Euro became the worst performing currency in the month of July. The major counterparts the Euro failed against are the safe-haven currencies, such as the US Dollar, the Japanese Yen and, of course, the Swiss Franc. The Euro fell against these currencies by 3.65 percent, 4.25 percent and 4.59 percent, respectively. The news released yesterday according to which Greece has missed its interim deficit reduction targets, as announced Read more »

Euro fell some more today, especially against the Swiss Franc, based on the new concerns regarding Greece and Italy. It has been noticed that, concerning the EUR/CHF pair, new record lows have been reached today. This has happened regardless of the discussions which have now lasted a while between the finance ministers of the Eurozone concerning the ways in which they should act as to solve the economic difficulties from some of the member countries of the European Union and to the ways in which they can persuade investors to calm down and not be affected by the concerning the news which tend to become worse from day to day. One of the news which has impacted the evolution of the EUR/CHF pair is related to the fact that the European Central Bank is now looking for solutions in order to double its emergency loan fund in case there is the need to use it as to support Read more »

The situation of the Euro became worst during the last week due to the fact that the concerns on the Eurozone grew as the situation of Portugal, Greece, Spain, and Italy aggravated. The fact that the Portugal’s rating has been downgraded has caused raising concerns on the Eurozone and its debt problems. Moreover, the fact that Greece has been assigned temporary solutions does not mean that the situation has been solved. The situation in Greece still depends on the ways in which the key euro group meetings and key economic event risk will evolve. The fact that the Moody’s suggested that the future sovereign bailouts are likely to require involuntary private sector participation has caused private bond holders to worry about their future losses on periphery debt, which has caused the outstanding bonds value less on perceived credit risk. The soar of bond yields did not only occur in Portugal, but also in Ireland, Italy and Spain, as Read more »

Yesterday data releases from around the globe were generally negative and worse than the market expected, except Swiss retails sales and SVME PMI.

China’s PMI index fell to 52, from 52.9 in April. The U.S. PMI dropped to 53.5 from 60.4 in April. Data from the euro region was at 54.6 compared with 58 in April. In Russia, PMI slipped to 50.7, from 52.1 in April. Figures showed that manufacturing growth from Asia to Europe and U.S. slowed in May, also indicating that momentum of global economy is weakening.

ADP Employment Change came in at 38k vs 177k expected. U.S. equities fell sharply after very weak ISM and ADP figures. The dollar weakened against JPY and CHF. Safe heaven currency CHF hit record highs against USD and EUR. A fast rise is Swiss retail sales data also boosted speculations that the SNB (Swiss National Bank) may raise borrowing costs.

Sterling weakened against the dollar and euro Read more »