Switzerland

This post first appeared on Patreon on 9 Jul 2018 Last week, I wrote up a macro bond play that involves three parts: currencies, spread differentials and default risk. I want to hone in on one of those three today: currencies. And here's…

Compared to the 1930s, this deflationary crisis has played out much slower and more benignly. That doesn’t mean it isn’t a crisis. It is one, as evidenced by the beggar-thy-neighbour tactics like negative rates and quantitative easing that…

In the wake of the turmoil surrounding the Swiss Franc, the Danish krone has become the subject of speculative attack. Unlike the Swiss, the Danes have a peg to the euro that is permanent and long-lasting. They also have a backstop via a…

I had been intending to write this post as a counterpoint to what I wrote yesterday about curve inversion. The Chief bullet point was going to be about the Fed’s not wanting to create curve inversion. But with the Swiss National Bank move,…

The Swiss National Bank’s announcement that it had decided to scrap its floor for the Swiss Franc against the euro is the biggest thing to hit the foreign exchange market since the UK and Sweden were booted out of ERM. This is a very big…

Starting 22 Jan 2015, the Swiss National Bank will charge banks 0.25% to deposit overnight funds. This move will push the 3-month Swiss franc Libor rate, currently in a Fed-like range from 0% to 0.25%, into negative territory. And it is…

Fundamental and technical considerations are aligned in favor of the US dollar. The latest string of economic data, including the June employment report, is strengthening the market's conviction that the Federal Reserve will begin tapering…

By Marc Chandler  The dollar is the king of castle, extending yesterday's post-Fed rally across the board. Emerging market currencies have been particularly hard hit and we note that the Turkish lira is at new record lows.  Asset markets…

By Daniel Gros, Director of the Centre for European Policy Studies, Brussels Switzerland has pegged its currency to the euro at a level that helps it sustain a 12% current-account surplus and one of the lowest unemployment rates in Europe.…

By Marc Chandler The Swiss National Bank does not miss an opportunity to remind market participants that it is determined to cap the Swiss franc's appreciation. The cost of imposing its will appears to be rising. The Financial Times today…