Posts Tagged ‘Franc’

Notes From Underground: Unemployment Report Spot-On and Meaningless; Draghi Doesn’t Disappoint

December 6, 2015

The U.S. jobs report was in line with market expectations colored by the Wednesday release of the ADP data. The market’s response was interesting in that BONDS, STOCKS AND THE DOLLAR reversed some of the reaction to ECB President Mario Draghi’s press conference on Thursday. While the jobs report seemed to SOLIDIFY an FOMC rate hike next week, the settlements on Friday raises questions about the Fed’s current strategy. Even though a rate increase is a “certainty” and with the ECB promising more liquidity at lower interest rates, the settlement prices at the week’s end were perplexing:

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Notes From Underground: The Swiss National Bank meeting today resulted in the Swiss Franc getting a bid … why?

June 17, 2010

The Swiss National Bank held rates steady today at 25 basis points and yet the Swiss currency found the policy statement to be bullish. The market read the release as a softening of the Swiss bank’s stance on intervening to weaken the Swiss Franc againt the EURO. The head of the SNB, Philipp Hildebrand, noted that tensions in the finacial markets and the fiscal crisises in the World “have increased the downside risks to the economy.” He added,

“Should those downside risks materialize and, via an appreciation of the Swiss Franc, lead to a renewed threat of deflation,the SNB would take all the measures to ensure price stability.”

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