No Currency Peg Yet for the Swiss Franc As SNB Escalates

Today, the Swiss National Bank (SNB) announced it is taking additional measures to try to weaken its currency and wave off the franc’s many adoring fans. The SNB’s latest statement gets an “A” in rhetoric for amplifying its fighting words and claiming victory in one battle even as the bank warns it is prepared to … Read more

The Swiss National Bank Warns That Strong Currency Threatens Economy

Two nations have the odd combination of near zero interest rates and extremely strong currencies: Japan and Switzerland. Japan has finally moved once again to try weakening its popular currency (click here for a description I gave on how to play the intervention). The Swiss National Bank (SNB), burned by a very unsuccessful attempt to … Read more

Doubting the Decade of the Franc

The Swiss franc is back to all-time highs against the euro, and the extrapolations have begun. This morning, Bloomberg reports that UBS expects the franc to remain strong for the entire decade: “The Swiss franc will stay strong and investors should hold it as a proxy for the old German deutsche mark as the currency … Read more

The Swiss Franc Reasserts Itself

The Swiss franc almost got lost in the wake of the U.S. dollar’s tremendously sharp relief rally from support. In the last week, the franc has reasserted its dominance after experiencing an entire month of rare weakness. The daily chart of the euro vs. the franc (EUR/CHF) below demonstrates the sharp reversal that punctuates the … Read more