SNB sets franc floor at CHF1.20 versus euro.

[traderslair]

I trade without indicators.

I laugh at all you guys watching indicators. Some guy steps in and moves the market in the biggest move ever recorded in history on currencies. Your indicators are worthless.

Indicators tell the past, not the future.

 

[DT-waw]

the end result is the same, citizens will pay for it, either via taxes or inflation.

 

[gmst]

Quote from traderslair:

I trade without indicators.

I laugh at all you guys watching indicators. Some guy steps in and moves the market in the biggest move ever recorded in history on currencies. Your indicators are worthless.

Indicators tell the past, not the future.

Traderslair - get your facts checked. Not one post in this thread has talked about indicators. What are you smoking ?? or you confusing this thread with something else !!

 

[dhpar]

who gives a shit who pays for this mess as long as you make money on it?

short CHF all the way...now SNB must vigorously defend EUR - otherwise they are screwed. free money here.

rememeber there are already negative nominal rates here, currency is volatile, swiss economy is weak, banks balance sheet large, etc. it is only a matter of hours when people realize that CHF is as far from safe heaven as hell....

 

[DT-waw]

Besides, China could buy a lot of Europe and U.S.
but so far they're not doing it.

33 biggest european banks are now worth only around $330 bn.
http://www.stoxx.com/indices/index_information.html?symbol=SX7E
How much land and real estate these 33 banks own? Hell a LOT.

All Manhattan real estate: $287 bn
U.S. military equipment: $414 bn
http://www.economist.com/node/18560525

They could also buy, Detroit, Las Vegas, vast area of Texas, Ireland, Spain...
China's fx reserves: 3,200 bn and rising. plus 400 bn held by Taiwan.

Bottom line:
Europe and U.S. are playing financial games and tricks with no real benefits. Print currencies and debt to keep their pensioners and most of useless employees above the poverty and hunger line for a bit longer.
I'm european and i find such policy dangerous.

 

[dhpar]

i should also add that who bails out first from their CHF longs wins - so it is off to the races for hedge funds and retail. at least 3 full figures by the end of week.

 

[Porcupine]

This is a Central Bank made FlashCrash and this should not be allowed in a free market! (I know ... I mentioned free market, which we do not have anymore)

 

[joneog]

Quote from Ghost of Cutten:

You don't seem to understand - the SNB can print as many CHF as it wants, therefore it can provide infinite CHF supply at 1.20. If the SNB doesn't want the CHF over 1.20, it won't go over that level.

A country cannot make its own currency go up, but it can certainly make it go down. The central bank does, after all, have the ability to literally print as much of the currency as they require.

the BOJ must not have gotten the memo

btw, I would love to see eur/chf just flatline at 1.20 for the next week, see if unlimited really is unlimited.

otherwise chf-carry for free money

 

[Martinghoul]

Quote from Ghost of Cutten:
You don't seem to understand - the SNB can print as many CHF as it wants, therefore it can provide infinite CHF supply at 1.20. If the SNB doesn't want the CHF over 1.20, it won't go over that level.

A country cannot make its own currency go up, but it can certainly make it go down. The central bank does, after all, have the ability to literally print as much of the currency as they require.

It is limited solely by the "will" of the various stakeholders.

 

[CrazyBoy]

What is to stop the ECB from setting a Euro base floor of 1.2 against the Franc tommorow? Perhaps this is the new FX market?

Just exactly who has the ultimate authority to determine the value of a currency when two 'opposing/individual institutions' both hold the autonomy and discretion to make a decision?

It would appear to myself asthough these speculators that the SNB are only to readily prepared to 'blame' for the rise in the Franc over the last 4 years perhaps live a little closer to home than the SNB would have you believe.

Smoke and mirrors.