Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 06.05.2010, 12:08
Uncle GroOve's Avatar
Forum Veteran
 
Join Date: Feb 2008
Location: Mendrisio
Posts: 1,080
Groaned at 7 Times in 5 Posts
Thanked 727 Times in 380 Posts
Uncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond repute
SNB lets go - euroswissie tanks 100pts

Looks like some sort of interesting developement is happening at the SNB.
EURCHF plunged 100 pts to 1.4220-30 ... obviously the game of buying up all those euros couldn't possibly last (day before yesterday apparently they had purchased 7bln of the eurocurrency).

Ah yes - and today is ECB day... Does this imply a further reduction in euro int. rates?

Ah well - we live in interesting times :-/

Paul
Reply With Quote
The following 2 users would like to thank Uncle GroOve for this useful post:
  #2  
Old 06.05.2010, 12:35
GenevaSculler's Avatar
Forum Veteran
 
Join Date: May 2008
Location: Geneva
Posts: 1,254
Groaned at 7 Times in 5 Posts
Thanked 1,025 Times in 529 Posts
GenevaSculler has a reputation beyond reputeGenevaSculler has a reputation beyond reputeGenevaSculler has a reputation beyond reputeGenevaSculler has a reputation beyond reputeGenevaSculler has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

It certainly didn't look like it was a sustainable course of action, but I guess forced by the continuing pressure on the EUR from the Greek problems. Do you think that's it for now, or is it going to move a lot more still?
Reply With Quote
  #3  
Old 06.05.2010, 12:51
flavio's Avatar
Forum Veteran
 
Join Date: Jun 2009
Location: Winterthur
Posts: 768
Groaned at 69 Times in 40 Posts
Thanked 614 Times in 345 Posts
flavio has an excellent reputationflavio has an excellent reputationflavio has an excellent reputationflavio has an excellent reputation
Re: SNB lets go - euroswissie tanks 100pts

huge!

Reply With Quote
  #4  
Old 06.05.2010, 14:15
Swissmountainair's Avatar
Forum Veteran
 
Join Date: Oct 2008
Location: A moving target...
Posts: 879
Groaned at 18 Times in 15 Posts
Thanked 950 Times in 448 Posts
Swissmountainair has a reputation beyond reputeSwissmountainair has a reputation beyond reputeSwissmountainair has a reputation beyond reputeSwissmountainair has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

Quote:
View Post
huge!

Yep the SNB really seem to have let it go. I was amazed at just how narrow a band it traded at over the past few days. Now we're down from 1.4325 early this morning to 1.4152.

Good time to be a German car dealer here, I imagine they'll be pocketing the difference sooner than reducing prices.
Reply With Quote
  #5  
Old 06.05.2010, 14:16
dino's Avatar
Forum Veteran
 
Join Date: Feb 2006
Location: Zurich
Posts: 1,663
Groaned at 31 Times in 24 Posts
Thanked 1,279 Times in 628 Posts
dino has a reputation beyond reputedino has a reputation beyond reputedino has a reputation beyond reputedino has a reputation beyond reputedino has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

wow... 1.4120 now.
Reply With Quote
  #6  
Old 06.05.2010, 14:20
Glendyn's Avatar
Forum Veteran
 
Join Date: Nov 2008
Location: ZH. Horgen area
Posts: 775
Groaned at 10 Times in 4 Posts
Thanked 933 Times in 385 Posts
Glendyn has a reputation beyond reputeGlendyn has a reputation beyond reputeGlendyn has a reputation beyond reputeGlendyn has a reputation beyond reputeGlendyn has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

Dear Financial types,
Excuse me for being a financial /ecomomic layman but this huge plunge to which you refer is a little over 1% according to my trusty calculator...
Yours confused,
Reply With Quote
  #7  
Old 06.05.2010, 14:21
flavio's Avatar
Forum Veteran
 
Join Date: Jun 2009
Location: Winterthur
Posts: 768
Groaned at 69 Times in 40 Posts
Thanked 614 Times in 345 Posts
flavio has an excellent reputationflavio has an excellent reputationflavio has an excellent reputationflavio has an excellent reputation
Re: SNB lets go - euroswissie tanks 100pts

Sh**!
Down the cliff!


1% in a single day, one major currency against another major currency is a hell of a lot.
Reply With Quote
  #8  
Old 06.05.2010, 14:24
Jimmy Bee's Avatar
Forum Veteran
 
Join Date: Aug 2009
Location: Zurich
Posts: 676
Groaned at 8 Times in 8 Posts
Thanked 383 Times in 211 Posts
Jimmy Bee has earned the respect of manyJimmy Bee has earned the respect of manyJimmy Bee has earned the respect of many
Re: SNB lets go - euroswissie tanks 100pts

Quote:
View Post
Looks like some sort of interesting developement is happening at the SNB.
EURCHF plunged 100 pts to 1.4220-30 ... obviously the game of buying up all those euros couldn't possibly last (day before yesterday apparently they had purchased 7bln of the eurocurrency).

Ah yes - and today is ECB day... Does this imply a further reduction in euro int. rates?

Ah well - we live in interesting times :-/

Paul
what the hell is SNB?
Reply With Quote
  #9  
Old 06.05.2010, 14:27
flavio's Avatar
Forum Veteran
 
Join Date: Jun 2009
Location: Winterthur
Posts: 768
Groaned at 69 Times in 40 Posts
Thanked 614 Times in 345 Posts
flavio has an excellent reputationflavio has an excellent reputationflavio has an excellent reputationflavio has an excellent reputation
Re: SNB lets go - euroswissie tanks 100pts

The Swiss National Bank

http://www.snb.ch/en/iabout/monpol
Reply With Quote
  #10  
Old 06.05.2010, 14:30
Swissmountainair's Avatar
Forum Veteran
 
Join Date: Oct 2008
Location: A moving target...
Posts: 879
Groaned at 18 Times in 15 Posts
Thanked 950 Times in 448 Posts
Swissmountainair has a reputation beyond reputeSwissmountainair has a reputation beyond reputeSwissmountainair has a reputation beyond reputeSwissmountainair has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

Pre-crisis back in August '08 1 Euro would get you 1.63 Swissies, and even stretched as far as c. 1.68 back in late '07.
Reply With Quote
  #11  
Old 06.05.2010, 14:31
GenevaSculler's Avatar
Forum Veteran
 
Join Date: May 2008
Location: Geneva
Posts: 1,254
Groaned at 7 Times in 5 Posts
Thanked 1,025 Times in 529 Posts
GenevaSculler has a reputation beyond reputeGenevaSculler has a reputation beyond reputeGenevaSculler has a reputation beyond reputeGenevaSculler has a reputation beyond reputeGenevaSculler has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

Quote:
View Post
what the hell is SNB?
Swiss National Bank.

Over the last weeks/months they have been selling Swiss francs and buying EUR in order to control the exchange rate (ie to protect all those Swiss companies with large exports) whilst the Euro is having a somewhat difficult time. The policy was not sustainable, and having stopped the buying of Euros, the exchange rate is in the process of rebalancing to a more realistic rate, taking into account the comparative strengths of the two currencies. Basically everyone thinks CHF is a hell of a lot better than EUR at the moment, so CHF is going up.
Reply With Quote
This user would like to thank GenevaSculler for this useful post:
  #12  
Old 06.05.2010, 14:46
Jimmy Bee's Avatar
Forum Veteran
 
Join Date: Aug 2009
Location: Zurich
Posts: 676
Groaned at 8 Times in 8 Posts
Thanked 383 Times in 211 Posts
Jimmy Bee has earned the respect of manyJimmy Bee has earned the respect of manyJimmy Bee has earned the respect of many
Re: SNB lets go - euroswissie tanks 100pts

Am I missing something?



Edit: Ahhhh last value taken from 2200 5/5
Reply With Quote
  #13  
Old 06.05.2010, 16:01
marton's Avatar
Forum Legend
 
Join Date: May 2008
Location: Kt. Zürich
Posts: 9,451
Groaned at 390 Times in 338 Posts
Thanked 16,592 Times in 8,989 Posts
marton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

Quote:
View Post
It certainly didn't look like it was a sustainable course of action, but I guess forced by the continuing pressure on the EUR from the Greek problems. Do you think that's it for now, or is it going to move a lot more still?
Yes, if only I could have found somebody to lend me a few million euro a few weeks ago to buy Swiss francs.
p.s. my guess is it will continue because I do not see what will stop it?

Last edited by marton; 06.05.2010 at 16:02. Reason: add a ps
Reply With Quote
  #14  
Old 06.05.2010, 16:05
Uncle GroOve's Avatar
Forum Veteran
 
Join Date: Feb 2008
Location: Mendrisio
Posts: 1,080
Groaned at 7 Times in 5 Posts
Thanked 727 Times in 380 Posts
Uncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

Quote:
View Post
Am I missing something?



Edit: Ahhhh last value taken from 2200 5/5
Your're not missing anything - it's just called "fast market"
Well, in this case we oughta say "vertical market" LOL

P.
Reply With Quote
  #15  
Old 06.05.2010, 16:06
Uncle GroOve's Avatar
Forum Veteran
 
Join Date: Feb 2008
Location: Mendrisio
Posts: 1,080
Groaned at 7 Times in 5 Posts
Thanked 727 Times in 380 Posts
Uncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

Quote:
View Post
Yes, if only I could have found somebody to lend me a few million euro a few weeks ago to buy Swiss francs.
p.s. my guess is it will continue because I do not see what will stop it?
Why didn't you do it FWD? Just deposit the collateral.

P.
Reply With Quote
  #16  
Old 06.05.2010, 16:18
Guest
 
Posts: n/a
Re: SNB lets go - euroswissie tanks 100pts

I agree that one percent in a day is big. However, if you are showing those two graphs side by side, at least make the vertical axes consistent. One runs from 1.6 to 1.4 and the other from 1.43 to 1.41 or something. It is misleading, if you are focused on the drop.
Reply With Quote
  #17  
Old 06.05.2010, 16:23
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 7,778
Groaned at 329 Times in 223 Posts
Thanked 10,776 Times in 3,749 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

This graph give a longer-term perspective:
http://www.ecb.int/stats/exchange/eu...ph-chf.en.html

Still kind of repetitive though...
Reply With Quote
  #18  
Old 06.05.2010, 16:23
amogles's Avatar
Forum Legend
 
Join Date: Mar 2008
Location: Zurich
Posts: 10,787
Groaned at 229 Times in 193 Posts
Thanked 22,462 Times in 9,539 Posts
amogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond reputeamogles has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

Quote:
View Post
Sh**!
Down the cliff!


1% in a single day, one major currency against another major currency is a hell of a lot.
But as still a WTF as far as I can see.

How many people are going to change their purchasing habits for a 1% shift in the exchange rate?

Unless you're into currency speculation or trading, this 1% means b****** all.
Reply With Quote
  #19  
Old 06.05.2010, 16:30
Swissmountainair's Avatar
Forum Veteran
 
Join Date: Oct 2008
Location: A moving target...
Posts: 879
Groaned at 18 Times in 15 Posts
Thanked 950 Times in 448 Posts
Swissmountainair has a reputation beyond reputeSwissmountainair has a reputation beyond reputeSwissmountainair has a reputation beyond reputeSwissmountainair has a reputation beyond repute
Re: SNB lets go - euroswissie tanks 100pts

Quote:
View Post
But as still a WTF as far as I can see.

How many people are going to change their purchasing habits for a 1% shift in the exchange rate?

Unless you're into currency speculation or trading, this 1% means b****** all.
Granted today's move on its own is of limited consequence. It has to be considered in context. If you look back just a few months the SNB intervened repeatedly to maintain the 1.50 rate, then more recently they supported 1.4325 and have now had to let that go. At time of writing the rate is 1.404. The progression is clear...
Reply With Quote
  #20  
Old 06.05.2010, 16:34
Chester's Avatar
Member
 
Join Date: Feb 2007
Location: Vaud
Posts: 125
Groaned at 3 Times in 2 Posts
Thanked 16 Times in 9 Posts
Chester has earned some respectChester has earned some respect
Re: SNB lets go - euroswissie tanks 100pts

So, do you think that the SNB should give all those Euros they bought to Greece to stop the Euro going down even more?
Reply With Quote
Reply

Tags
currencies, ecb, euro, snb, swiss franc




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Lets invent fake facts PlantHead Jokes/funnies 281 22.05.2010 12:04
Switzerland .Lets do it right this time cannut General off-topic 14 21.01.2010 15:32
SNB does not want the franc to appreciate Verbier Finance/banking/taxation 16 25.01.2009 10:43


All times are GMT +2. The time now is 03:17.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0