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Old 07.11.2011, 09:06
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The Swiss central bank warned it is ready to intervene again if necessary to push down the value of the national currency against the euro in order to protect exports to the country's main market.

Read the full article: Swiss franc could be devalued again: bank

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Old 07.11.2011, 22:38
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Re: Swiss franc could be devalued again: bank

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The Swiss central bank warned it is ready to intervene again if necessary to push down the value of the national currency against the euro in order to protect exports to the country's main market.

Read the full article: Swiss franc could be devalued again: bank

Leaders of the economy have stepped up their pressure onto the SNB, to raise the PEG to at least 1.30 . I think, the change is imminent
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Old 07.11.2011, 22:48
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Re: Swiss franc could be devalued again: bank

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Leaders of the economy have stepped up their pressure onto the SNB, to raise the PEG to at least 1.30 . I think, the change is imminent
Hopefully traders at UBS are not following a dead cert again, the last time it cost the bank 2.3 Billion.
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Old 07.11.2011, 23:53
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Re: Swiss franc could be devalued again: bank

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Hopefully traders at UBS are not following a dead cert again, the last time it cost the bank 2.3 Billion.
Let's realize that whomever imports € + £ stuff will have to pay more after the PEG gets raised again, as it must. At the other hand, the profits of UBS and CS subsidiaries abroad will be far better after the raise of the PEG.

I don't know what mistakes those bank-traders did "last time", I however remember that people at the commercial banks did not expect the PEG, not even when it was clear to come. While it is difficult really to know WHEN the PEG will get raised, it is obvious that it WILL be raised. While Mr Rechsteiner of the trades unions still speaks about 1.40, that may be a bit too high, so that it will be between 1.30 and 1.35 (most likely simply 1.30)
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Old 07.11.2011, 23:57
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Re: Swiss franc could be devalued again: bank

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I don't know what mistakes those bank-traders did "last time", I however remember that people at the commercial banks did not expect the PEG, not even when it was clear to come. While it is difficult really to know WHEN the PEG will get raised, it is obvious that it WILL be raised. While Mr Rechsteiner of the trades unions still speaks about 1.40, that may be a bit too high, so that it will be between 1.30 and 1.35 (most likely simply 1.30)
It's rather niave to think anything is obvious in financial markets, if it was everybody would be rich. There are 2 sides to every trade, one winner & one sucker!
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Old 08.11.2011, 00:09
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It's rather niave to think anything is obvious in financial markets, if it was everybody would be rich. There are 2 sides to every trade, one winner & one sucker!
This may be true, but it is the job of the UBS folks to make sure that UBS is not the sucker but the winner. How they do it is not my business to know but theirs.
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Old 09.11.2011, 11:52
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Re: Swiss franc could be devalued again: bank

Glad I came across this. We missed out on freezing the franc rate when it was almost equal to the euro. Looks like we better get on the ball and freeze the current rate.
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Old 09.11.2011, 21:04
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Re: Swiss franc could be devalued again: bank

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Glad I came across this. We missed out on freezing the franc rate when it was almost equal to the euro. Looks like we better get on the ball and freeze the current rate.
The present rate is too low, what is needed is the 1€=CHF 1.30 . 1.40 indeed would be good but might be extremely difficult to sustain. So that the compromise is 1.30 and is the one to come
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Old 09.11.2011, 22:58
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Re: Swiss franc could be devalued again: bank

Let's hope that God... ehem, I mean, the BNS, answers our prayers! 1.35! 1.35! or even better, 1.4!
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Old 09.11.2011, 23:23
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Re: Swiss franc could be devalued again: bank

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Let's hope that God... ehem, I mean, the BNS, answers our prayers! 1.35! 1.35! or even better, 1.4!
Why would you want to throw 15% of your money down the toilet, you could just give it to me!
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Old 09.11.2011, 23:50
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Re: Swiss franc could be devalued again: bank

Time to buy some euros...
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Old 10.11.2011, 02:08
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Re: Swiss franc could be devalued again: bank

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Time to buy some euros...
Probably not, but that's another story.
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Old 10.11.2011, 04:38
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Re: Swiss franc could be devalued again: bank

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The present rate is too low, what is needed is the 1€=CHF 1.30 . 1.40 indeed would be good but might be extremely difficult to sustain. So that the compromise is 1.30 and is the one to come
I don't understand really, raising it to 1.3 while the euro is falling more and more.....do they ever think that there's any solution soon to the EU zone with all what's happening on daily basis?.

SNB is just tied to a sinking rock here, so they might wanna think of an exit plan of the consequences of what they have been doing recently.
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Old 10.11.2011, 07:55
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Re: Swiss franc could be devalued again: bank

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I don't understand really, raising it to 1.3 while the euro is falling more and more.....do they ever think that there's any solution soon to the EU zone with all what's happening on daily basis?.

SNB is just tied to a sinking rock here, so they might wanna think of an exit plan of the consequences of what they have been doing recently.
Because 60% of exports and 80% of imports come from EU countries, mostly eurozone members who completely sorround the country, and therefore it really doesn't matter whether the euro is depreciating against other currencies and the swiss franc with it, what matters is that the exchange rate of the, by far, most important partner, is still too strong, rendering swiss exports and tourism uncompetitive and imports too cheap... killing swiss industry as news are lately showing and giving potential for the country to enter in a deflationary cycle.

And yes, that means I'm willing to "give up" some money (although I have plenty of savings in euros)... in exchange for job safety and general well-being of the country.
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Old 10.11.2011, 09:04
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Re: Swiss franc could be devalued again: bank

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Because 60% of exports and 80% of imports come from EU countries, mostly eurozone members who completely sorround the country, and therefore it really doesn't matter whether the euro is depreciating against other currencies and the swiss franc with it, what matters is that the exchange rate of the, by far, most important partner, is still too strong, rendering swiss exports and tourism uncompetitive and imports too cheap... killing swiss industry as news are lately showing and giving potential for the country to enter in a deflationary cycle.

And yes, that means I'm willing to "give up" some money (although I have plenty of savings in euros)... in exchange for job safety and general well-being of the country.
I totally understand that but instead of being hooked on a sinking stone, they should have studied other internal options to support businesses and revise their pricing strategies......all i can see now is that we're heading towards major inflation now if this continues cause EU is not gonna sort their mess anytime soon
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Old 11.11.2011, 00:01
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Re: Swiss franc could be devalued again: bank

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I totally understand that but instead of being hooked on a sinking stone, they should have studied other internal options to support businesses and revise their pricing strategies......all i can see now is that we're heading towards major inflation now if this continues cause EU is not gonna sort their mess anytime soon
Why should we? The deflationary preassures remain, partly because the franc is still overvalued against the euros and import prices keep lowering (albeit not as much as they should) as contracts are renegotiated, and beacuse the swiss national bank has not been printing any franc so far to fight against investors who would try to break the 1.2 barrier, as they simply haven't dared to try to fight the central bank's aim, in fact the exchange rate has not even approached 1.2 since then, staying above 1.22 for most of the time (notice that right now it's 1.23). Why should we head into a major inflation? There is not reason for that to happen.
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