Posted on 01/15/2015 6:00:23 AM PST by SkyPilot
Just now:
Crude, Gold Jump After Goldman Says SNB Action Hints At “Massive ECB QE”
“This is a massive message from SNB to the market : ECB is going to do QE, and its going to be big...” notes Goldman Sachs
Meanwhile, Gold is up, Oil is up...
Note that the Swiss interest rate is -0.75%, down from -0.25%. I guess the zero bound isn’t a bound.
Does not inspire confidence. Sounds more like panic to me.
Also, beward of wild market swings.
Markets have historically swung wildly before huge crashes.
Swiss Stocks Plunge as Crazy Central Bank Move Upends Markets
"Its completely crazy and a shock to everyone, Francois Savary, chief investment officer of Reyl & Cie., said by phone from Geneva. Volatility in the currency markets is never very positive, because you add nervousness to a market that is looking for certainties. It makes you unable to forecast profits or economic growth.
Some big-name investment Guru’s calling this “A Financial 9/11” on Twitter.
A huge QE will trash the Euro, Greece may yet exit/be kicked out of the EU, and Southern Europe is a real basket case.
The Swiss finally said “Enough”, and pulled the plug to protect their own interests.
Not really unexpected. The tie of the franc to the euro was unsustainable. The smart money was shorting euros and buying francs for when this move wold take place.
Ping
Exactly.
This leaves others holding the bag, and they won't like that one bit.
-The Swiss finally said Enough, and pulled the plug to protect their own interests.
-Exactly.
This leaves others holding the bag, and they won’t like that one bit.
It also gets the Swiss out of any potential Euro/Greece “Bail-In”, that has already been a rumored last resort.
It must be closer to reality than we know, for such a stark move, just at this time.
Is it correct to say the Swiss decoupled their currency from the Euro to protect the Franc from devaluation due to currency printing the EU is planning?
Ping.
Ping.
Get ready. Get armed
I am financially illiterate, (which Is why I work at a Bank) but I wonder if this has anything to do with Russia Cutting off Gas Supplies in The Ukraine?
I wonder what will happen to all those mortgage and other loans made in Eastern Europe denominated in Swiss francs?
yes
Switzerland seems like the only country in the West that cares what’s best for its people.
Look for Swiss/Euro to stabilise between 1.00 and 1.08 (just my view). Euro is still under pressure, although this explosion and the resultant move has removed a good deal of the pent-up, artificially created pressure. EUR is still a bear and likely will continue to be so until the ECB and Draghi get their respective heads out of their arses. First sign of this (well, I **think** the first, at least) will be when they either let Greece exit or kick them out bodily.
When this occurs? No idea. Should have been done 4-5 years ago in order to prevent the knock-on effects we've all seen with the other quasi-bankrupt PIIGS.
Good trading to you, but STAY AWAY from the ccy mkts unless you are very confident you know what you're about, ok? Instability will reign for some time, and the only trade I can even conceive is the purchase of 90+ day ATM straddles.
The Swiss aren’t stupid.
The Templars have their revenge......................
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.