(This is an excerpt from an article I originally published on Seeking Alpha on November 5, 2014. Click here to read the entire piece.)
Suddenly, the Swiss franc (FXF) is nearing the 1.20 floor against the euro again. Almost three months ago, I thought the Swiss franc was hurtling toward a retest of the longstanding floor. After casually drifting lower for about three weeks, EUR/CHF simply stopped declining and even experienced two short rallies.
Support finally broke when the euro (FXE) started this week tumbling rapidly against all major currencies. Here is a chart of the intraday action of the euro against the U.S. dollar.
As if this were not enough to work the nerves of the Swiss National Bank (SNB), Switzerland’s central bank that put in place the 1.20 line in the sand, at the time of writing, Switzerland’s Federal Statistics Office reported that its annualized inflation rate based on the Consumer Price Index (CPI) increased ever so slightly to zero in October. {snip}
Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on November 5, 2014. Click here to read the entire piece.)
Full disclosure: no positions