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View Poll Results: How long will the CHF peg hold?
Less than a day 1 0.64%
Less than a week 17 10.90%
Less than a month 24 15.38%
Until the end of the year 43 27.56%
Longer 71 45.51%
Voters: 156. You may not vote on this poll

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  #481  
Old 05.04.2012, 12:53
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Re: SNB Pegs CHF to the EUR!!!

Ok gents, bets are off... the EUR/CHF finally trades below the floor of 1.2!!

When will the SNB show it's Cajones again! Great time to buy Euros? or should you wait till it hits 1.1 again?
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  #482  
Old 05.04.2012, 12:59
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Re: SNB Pegs CHF to the EUR!!!

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Ok gents, bets are off... the EUR/CHF finally trades below the floor of 1.2!!

When will the SNB show it's Cajones again! Great time to buy Euros? or should you wait till it hits 1.1 again?


Yes the eur/CHF market seems to be very active, wonder if somebody is testing SNB resolve? Thursday before Easter when many Swiss are on holiday is a good time to try I suppose?
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  #483  
Old 05.04.2012, 13:00
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Re: SNB Pegs CHF to the EUR!!!

Right before lunch time too ha ha
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  #484  
Old 05.04.2012, 13:00
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Re: SNB Pegs CHF to the EUR!!!

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Ok gents, bets are off... the EUR/CHF finally trades below the floor of 1.2!!

When will the SNB show it's Cajones again! Great time to buy Euros? or should you wait till it hits 1.1 again?
http://finance.yahoo.com/news/euro-s...160000897.html
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  #485  
Old 05.04.2012, 13:32
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Re: SNB Pegs CHF to the EUR!!!

Interesting article. most of the words were recognisable as English-derived, yet it still appears to be some sort of foreign language.
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  #486  
Old 05.04.2012, 13:35
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Re: SNB Pegs CHF to the EUR!!!

Just incredible.

SNB repeatedly stated they would not tolerate a single transaction below 1.20 CHF per EUR. They just lost all credibility (including mine, following a stop-loss order). Following this, the EUR/CHF will remain glued to 1.2 for the years to come.
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  #487  
Old 05.04.2012, 13:43
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Re: SNB Pegs CHF to the EUR!!!

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Interesting article. most of the words were recognisable as English-derived, yet it still appears to be some sort of foreign language.
Well basically they are saying that if you believe the SNB will buy euros & sell CHF to keep the eur/chf rate @ 1.20.
Then whenever the eur/chf rate falls below 1.20 you should buy because the SNB will buy euros & sell CHF & give you an immediate profit.
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  #488  
Old 05.04.2012, 13:46
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Re: SNB Pegs CHF to the EUR!!!

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Just incredible.

SNB repeatedly stated they would not tolerate a single transaction below 1.20 CHF per EUR. They just lost all credibility (including mine, following a stop-loss order). Following this, the EUR/CHF will remain glued to 1.2 for the years to come.

How so? It looks like a mechanism kicked in at 1.1996.
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  #489  
Old 05.04.2012, 14:12
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Re: SNB Pegs CHF to the EUR!!!

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How so? It looks like a mechanism kicked in at 1.1996.
well, rather a sleepy bns trader ain't it? The "mechanism", if any, should have kicked in at 1.2000 sharp if bns wanted to keep their promise and credibility...
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  #490  
Old 05.04.2012, 14:20
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Re: SNB Pegs CHF to the EUR!!!

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well, rather a sleepy bns trader ain't it? The "mechanism", if any, should have kicked in at 1.2000 sharp if bns wanted to keep their promise and credibility...
That would require the SNB to have unlimited active bids @ 1.2, we know there is no such thing, the floor can be broken and the SNB could go down... The EUR just needs to weaken enough to allow this to happen.

So far I don't think they have actually intervened, but merely just the threat was enough...
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  #491  
Old 05.04.2012, 14:54
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Re: SNB Pegs CHF to the EUR!!!

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well, rather a sleepy bns trader ain't it? The "mechanism", if any, should have kicked in at 1.2000 sharp if bns wanted to keep their promise and credibility...
The banknote printer was out of toner.
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  #492  
Old 05.04.2012, 14:58
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Re: SNB Pegs CHF to the EUR!!!

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The banknote printer was out of toner.
Soon the world is going to run out of trees.
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  #493  
Old 05.04.2012, 23:12
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Re: SNB Pegs CHF to the EUR!!!

There is a widespread story that the fall below 1.20 was due to a single bank that did not manage its credit limits correctly.

Another view is that after the high rates that had to be paid by Spain in recent bond auctions so many investors are dumping their euros before the holiday weekend.
I would guess the SNB must be intervening otherwise the eur/CHF rate would be continually drifting down
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  #494  
Old 07.04.2012, 19:08
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Re: SNB Pegs CHF to the EUR!!!

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There is a widespread story that the fall below 1.20 was due to a single bank that did not manage its credit limits correctly.

Another view is that after the high rates that had to be paid by Spain in recent bond auctions so many investors are dumping their euros before the holiday weekend.
I would guess the SNB must be intervening otherwise the eur/CHF rate would be continually drifting down
Now the newspapers are talking about a hedge fund coordinated attack on the eur/CHF last Thursday.

Rumours that the SNB had to put in some billions to calm things down
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  #495  
Old 07.04.2012, 19:24
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Re: SNB Pegs CHF to the EUR!!!

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That would require the SNB to have unlimited active bids @ 1.2, we know there is no such thing, the floor can be broken and the SNB could go down... The EUR just needs to weaken enough to allow this to happen.
.
As the SNB can print as many CHF as they want to pay for the Euros, the risk to the SNB is zero, just be sad for anyone who holds CHF.
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  #496  
Old 07.04.2012, 20:39
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Re: SNB Pegs CHF to the EUR!!!

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As the SNB can print as many CHF as they want to pay for the Euros, the risk to the SNB is zero, just be sad for anyone who holds CHF.
Good for anybody who managed to buy below 1.2; they will get a guaranteed profit from the SNB.
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  #497  
Old 07.04.2012, 20:42
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Re: SNB Pegs CHF to the EUR!!!

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Good for anybody who managed to buy below 1.2; they will get a guaranteed profit from the SNB.
Depends of the level of inflation over the next few years, your assuming marginal inflation. If the SNB were to issue twice as many CHF as currently exist then the 'guaranteed' profit would be a huge loss in buying power. Of course the would see sense long before & your 'guarantee' would not exist.
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  #498  
Old 07.04.2012, 20:45
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Re: SNB Pegs CHF to the EUR!!!

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Depends of the level of inflation over the next few years, your assuming marginal inflation. If the SNB were to issue twice as many CHF as currently exist then the 'guaranteed' profit would be a huge loss in buying power. Of course the would see sense long before & your 'guarantee' would not exist.
The currency traders take their profits in seconds......
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  #499  
Old 07.04.2012, 20:49
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Re: SNB Pegs CHF to the EUR!!!

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The currency traders take their profits in seconds......
Except the one at UBS , just before the cap was announced, of course whats a few billion loss if profits are 'guaranteed'. There won't be any notice if it ends!

If markets get too turbulent then governments have a habit of cancelling trades, as someone who should have made millions one evening 18 months during the flash crash, I can vouch for that!
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  #500  
Old 07.04.2012, 20:52
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Re: SNB Pegs CHF to the EUR!!!

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Except the one at UBS , just before the cap was announced, of course whats a few billion loss if profits are 'guaranteed'. There won't be any notice if it ends!
Amen! +10 characters!
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