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CurrencyShares Swiss Franc Trust ETF (FXF)

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  • Dec. 3, 2012, 11:06 AM
    Credit Suisse does indeed plan to begin charging negative interest rates on Swiss franc deposits, "inviting customers to keep cash balances as low as possible." Whether this will have effect on safe-haven flows is another story. What's a couple of basis points to a wealthy Spanish family or company concerned about a euro exit or capital controls in their home country.
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  • Dec. 3, 2012, 7:58 AM
    Negative deposit rates may come to Switzerland as Credit Suisse reportedly informs clients it intends to make them pay for the privilege of banking cash there. The euro/Swiss franc cross shoots higher to CHF 1.2090, well above the SNB floor of 1.20, and perhaps taking pressure off the bank to keep buying every euro in sight.
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  • Nov. 28, 2012, 12:42 PM
    The Swiss franc remains too high vs. the euro, says SNB Chairman Jordan, promising to defend the CHF 1.20 floor with "determination." The floor defense - printing francs in unlimited quantities - has ballooned the SNB balance sheet to 10X its level of 5 years ago. Running out of euros to buy, the bank now has 12% of its reserves invested in foreign stocks. And we give Bernanke a hard time?
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  • Nov. 13, 2012, 11:37 AM
    With the SNB able to defend the CHF 1.20 floor on the euro while actually lowering the share of euros in its reserves, might now be the perfect time to hike the floor even higher? Last year's capping of franc strength may have kept the Swiss economy from a severe contraction, but the swissie remains historically high vs. the euro, and GDP growth has yet to take shape. FXF -5.2% Y/Y.
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  • Nov. 8, 2012, 1:00 PM
    "The complexity and risk associated with the management of our investments have recently increased significantly," says the SNB's Frtiz Zurbrugg, sounding like he's hedging on the bank's CHF 1.20 floor on the euro; though adding the usual line about enforcing such with "utmost determination." Previous: The SNB quietly unloads euros. 
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  • Nov. 7, 2012, 9:30 AM
    Have the safe-haven flows into Switzerland stopped? New data shows the SNB's foreign-exchange reserves fell for the first time in 8 months in October, suggesting the bank did not have to hoover up euros to keep in force the CHF1.20 floor. The cross currently stands at CHF 1.2065.
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  • Nov. 7, 2012, 6:54 AM
    The greenback reflexively slid lower as the President's reelection became clear last night, but has since retraced all of the move. Were traders expecting a Romney victory followed by a rate hike? The Fed wasn't going anywhere no matter last night's result.
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  • Nov. 1, 2012, 3:18 PM
    A bit of deft trading allowed the SNB in Q3 to cut its euro holdings to 48% of reserves from 60%, all without shredding the value of the common currency. The bank - in order to defend the CHF 1.20 floor - has spent the last year accumulating euros at a furious pace, putting itself at risk should the markets attack. Increased during Q3 were its holdings of greenbacks, pounds, yen, and loonies.
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  • Sep. 13, 2012, 7:13 AM
    "With utmost determination," SNB President Jordan promises to uphold the CHF 1.20 floor on the euro/Swiss franc cross. "The franc is still high and is weighing on the Swiss economy." Locked at 1.2010 francs for months, the euro has soared to over 1.21 in recent days (yes, 100 pips is soaring) amid optimism the EU finally has a handle on the debt crisis.
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  • Sep. 7, 2012, 7:35 AM
    Maybe the clearest sign the world has changed this week, the pressure on the SNB-imposed euro/Swiss franc floor of CHF 1.20 has lifted. Put in place a year ago as a flood of euros sought safe-haven in Switzerland, the floor has been under attack since, forcing the SNB to hoover up euros by the tens of billions. Now it's those short euros under attack as the cross lifts all the way to CHF 1.2146.
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  • Sep. 5, 2012, 3:42 PM
    There's an outstanding lesson somewhere in a very cool Oanda interactive showing clients' currency positions over time alongside the performance of the currency. Quick take: Far from being contrary indicators, Oanda traders tend to lean against the trend, adding to longs as a currency falls and selling when a currency is one the way up.
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  • Sep. 5, 2012, 10:09 AM
    The euro/Swiss franc cross continues a big move higher, touching CHF 1.2046 as the SNB declines to comment on speculation it is considering raising the CHF 1.20 floor. These occasional rumors are helpful to the SNB, perhaps allowing the bank to unload some of its vast stash of euros at prices higher than it bought them for.
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  • Sep. 5, 2012, 8:43 AM
    Whatever one thinks of the floated ECB bond purchase plan, it has lit a fire under euro/Swiss franc, the cross rocketing 15 pips to CHF 1.2025 (this has more or less flatlined for months at 1.2010, so 15 pips = rocket). This crisis will have truly passed when this pair moves and remains substantially higher.
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  • Sep. 5, 2012, 7:07 AM
    Suggesting upward pressure has eased on the franc, Swiss economic minister Johann Schneider-Ammann says the odds of emergency measures (capital controls or negative rates) have fallen. All this time we thought the setting of a floor on euro/franc was an emergency measure. Traders will have to await the next SNB report on reserves to find out if pressure on the franc has truly lifted.
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  • Aug. 29, 2012, 7:43 AM
    The SNB (the "Zimbabwe of the Alps" according to Jim Grant, now speaking on Bloomberg) finds itself with a lot of cash to invest after reserves rose 50% in 4 months to $380B. The surge is the result of the floor it placed under the euro/franc cross, necessitating the bank to print francs with which to purchase euros no one else seems to want.
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  • Aug. 27, 2012, 4:47 PM
    Losses are not important, we need price stability, says SNB chief Jordan, defending the bank's massive purchases of euros to defend the floor against the Swiss franc. The floor however, "is not for eternity," he says. It is an "extreme measure for an extreme situation." As to what it is doing with all of those euros: High quality bonds, of course, but Jordan also tips the SNB is one of the few central banks to invest in stocks.
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FXF Description
CurrencyShares Swiss Franc Trust is designed to track the price of the Swiss Franc net of Trust expenses, which are expected to be paid from interest earned on the deposited Swiss Francs.
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Country: Switzerland
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