Thanks for your efforts - today and throughout the year.
I note your CHF call, and can't argue with the market. However, it'll be interesting to see how long the move lasts. The SNB is exceptionally sensitive to the EURCHF rate for obvious trade reasons (so USD-based investors need to keep a close eye on EURUSD as well); intervention in EURCHF is quite likely if CHF stays strong. Another consideration is that the SNB has explicitly stated that it's going to get onto the QE bandwagon; surprising, but I guess the fundamentals for the Swiss economy do look pretty horrible going forward - at least, by their normal standards!.
-
Thanks for your efforts - today and throughout the year.
Dec 23 14:53 pm
|Rating:
0
0
All Comments by OldLimey »Tuesday Outlook: Commodities, Emerging Markets [View article]
I note your CHF call, and can't argue with the market. However, it'll be interesting to see how long the move lasts. The SNB is exceptionally sensitive to the EURCHF rate for obvious trade reasons (so USD-based investors need to keep a close eye on EURUSD as well); intervention in EURCHF is quite likely if CHF stays strong. Another consideration is that the SNB has explicitly stated that it's going to get onto the QE bandwagon; surprising, but I guess the fundamentals for the Swiss economy do look pretty horrible going forward - at least, by their normal standards!.