Posts Tagged: SNB

The European debt crisis aggravates from one day to another. As the Italian rating has been downgraded today, there are more and more concerns about the viability of the European Union. In order to try and find a solution to these problems, the finance ministers of the countries in the European Union met today to discuss the sovereign debt crisis issue, especially the situation in Greece, but the meeting ended with no noticeable results. All this indecisiveness of the European politicians had a very bad effect upon the European currency, which has recorded once more losses against its major counterparts. But this is not the only European currency which performed badly today, as the Swiss Franc also registered losses based on the speculation according to which the Swiss National Bank is going to impose new measures in order to prevent the overvaluation of the nation’s currency.

When it comes to the problems in the European Union, the most Read more »

This has been quite an interesting trading week as there have been lots of changes on the market. Not only that the macroeconomic reports have shown weak data about almost all the countries, fact which has made currencies lose value, but also the Swiss National Bank announced the fact that it has taken the decision of imposing a fix trading rate for the EUR/CHF pair, that of 1.20 in order to stop the overvaluation of the nation’s currency. Despite this additional measure, the Swiss Franc continued to grow against its major counterparts.

The previous week has been quite bad for the Great Britain Pound which has registered the greatest weekly fall against the US Dollar in nine months. This has been possible based on speculation that the weak UK economy is to force the central bank to maintain the interest rates at the record low level. From a virtual point of view, all the fundamental data concerning the Read more »

The Swiss Franc has had a remarkable evolution today, being the strongest gainer both in the Asian and in the European sessions. This growth is related to the fact that the Swiss national Bank has taken the decision of not intervening on the evolution of the nation’s currency for the first time in the month of August. It has been quite a trend for the previous weeks for the Swiss National Bank to take the decision of announcing on Wednesday that it has either injected liquidity or has verbally intervened, or even both sometimes, in order to artificially decrease the value of the currency against the Euro. Moreover, there have been some Swiss policy makers who have jumped to the idea that it would not be bad to have a peg against the Euro. The first value of this peg which has been suggested by these policy makers has been in the 1.100 are and, more recently, in Read more »

The trading session today turned out to be favoring the risk appetite currencies, causing the safe-havens to fall. This is related to the speech held by the Chairman of the Federal Reserve, Ben Bernanke, which insisted upon the fact that there are mo additional policy measures to be taken given the fact that he and the other policy makers continue to be confident in what it concerns the evolution of the US economy on mid- and long-term. This has generated an increased appetite for risk, which has been seen in the trading session on Monday.

Traders to tend to believe that additional stimulus could be in the pipeline, but the moment has not yet come. Nonetheless, the speech held by Bernanke suggested that there are chances for new policy measure to be taken in the situation in which they would be necessary, and these comments seem to have persuaded traders. However, the reactions to this statement, on behalf Read more »

Despite the fact that its fundamentals are not exactly good, this week turned out to be not so bad for the US Dollar. Of course, this has been a good week for the US Dollar if taking into consideration the fact that the currency has managed to hold its ground despite all the pressure to the downside which has been pressed against it. On the other hand, the Swiss Franc has lost some of its ground due to the fact that the speech held by the Chairman of the Federal Reserve, Ben S. Bernanke, has had a positive effect on the trading sentiment and to the fact that there are rumors according to which the Switzerland’s policy makers are thinking about imposing another measure in order to slow the evolution of the nation’s currency.

It is quite amazing that the US Dollar has managed to keep its ground against most of its major counterparts due to the fact 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 »

The intervention of the SNB yesterday has caused the fall of the Swiss Franc against all the major currencies on the market. This descending trajectory has been maintained during today’s trading due to the fact that the Vice President of the Swiss National Bank, Thomas Jordan, has had the idea that a short-term peg of the Swiss Franc against the Euro could be legal.

These measures come as a result of the Swiss National Bank’s policy which has been going on for the last several years of weakening the national currency. But, despite this intention, the weakening of the Swiss Franc has never been truly achieved. This time is going to be different as a peg would not have just a one-time effect as all the previous interventions, but would place a continuous pressure on the nation’s currency. This actually shows us that the Swiss National Bank is ready to take some measures which are going to really Read more »

Due to the fact that the first intervention of the SNB in the evolution of the Swiss Franc has only had little results, the bank decided to adopt new measures in order to stop the national currency’s growth. Based on this fact, the Swiss Franc registered losses today, retreating from yesterday’s records against the US Dollar and the Euro. The excessive appreciation of the Swiss currency has been stopped by the SNB when it comes to its relation with all the other counterparts on the market.

This new intervention on behalf of the SNB came after the repeated statements which announced that the strength of the Swiss Franc is now a “threat” to the nation’s economy and thus increased pressure must be put on the Swiss Franc: “In the light of these developments, the Swiss National Bank (SNB) is taking additional measures against the strength of the Swiss franc. It will again significantly increase the supply of liquidity 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 »