All Entries Tagged With: "$EURCHF"
Japanese Pull a Swiss
Last Sunday night, Japan’s central bank intervened in the currency market. The Bank of Japan sold yen en masse in an effort to drive down the value of the yen. The move worked—at least initially—as the yen dropped against the dollar roughly 5%. Against the euro, the yen dropped about 3%. Interestingly, the move was [...]
Swiss to Weaken the Franc Further?
Tuesday morning saw relatively large moves in several currency pairs, as the CHF/EUR spiked sharply lower while he USD/CHF moved higher. Unconfirmed chatter had been circulating that the Swiss National Bank (SNB) was considering raising its euro-to-franc peg further, setting it to 1.25 up from the previous 1.20. If the peg would be increased to [...]
Japanese Economy Continues to Decline
On Thursday, data on Japanese core machinery orders showed a drop of 8.2%. Analysts had been anticipating a decline of 4.1%. The drop represents the largest drop in the economic indicator in the past 10 months. The decline in machinery orders may be due to a variety of factors. The Japanese economy continues to be [...]
Swiss National Bank Vows to Defend Exchange Rate
On Tuesday, the Swiss National Bank (SNB) opted to peg its currency to the euro. Vowing to use unlimited currency purchases, the SNB pledged to maintain the franc’s exchange rate against the euro above the value of 1.20 euros for every franc. The currencies had approached parity in recent months. The announcement sent a shockwave [...]
Bank of Japan Ponders Further Intervention
On Thursday, officials with the Japanese government met with officials at the Bank of Japan to discuss the recent record appreciation of the Japanese yen. Since the beginning of July, the yen has been steadily appreciating, particularly against the U.S. dollar. During the first week of August, the Bank of Japan intervened in an effort [...]
Swiss National Bank Chickens Out
On Wednesday, the Swiss National Bank (SNB) declined to peg its currency, the franc, to the euro. The announcement, or lack thereof, may have been the driving force behind the franc’s rally Wednesday morning. The EUR/CHF traded down nearly 2% at one point, before bouncing back slightly later in the session. Speculation mounted last week [...]
Should the Swiss Abandon the Franc and Join the Euro?
On Thursday, the Swiss franc depreciated significantly. The franc fell against the euro by over 5.5% and against the dollar by roughly 5%. The New York Times reported on Thursday that the Swiss central bank had signaled that it was considering pegging the nation’s currency to the euro. In recent weeks, the bank had called [...]
The German Public May Decide the Fate of the Euro
The European Union has been under tremendous stress in recent weeks. While the debt problems in Greece have been known for years, the situation has exacerbated as first Spain, and then Italy and now even France have come under fire. As the situation has grown in severity, the proposed solutions have also become more extreme. [...]
Can the Swiss Central Bank Stop the Runaway Franc Train?
The Swiss franc has been appreciating significantly in recent months. Investors—particularly European investors—may have been running to the franc as a safe-haven play on concerns of European debt problems. For some time now, speculation has been building over the possibility that indebted Greece would be forced to default or otherwise restructure its debts. That may [...]
Swiss Bankers Fight Back, Making the Franc Less Attractive to Investors
It may be said that currency markets have been especially volatile over the course of the past few years. This might be no surprise given the extraordinary actions of central banks around the world in the wake of the 2008 global financial crisis. Some currencies may have shifted due to the actions of their issuing [...]
