Tag: SNB

SNB Intervened again…

The Swiss National Bank intervened again on its currency. According to Bloomberg, the SNB sent an email statement: “With immediate effect, it will no longer tolerate a euro-franc exchange rate below the minimum rate of 1.20 francs” and “is prepared to buy foreign currency in unlimited quantities.”

Guess where the EURCHF is currently trading? 1.2023 (from 1.1015 earlier this morning, that’s around 1000 pips)… So it worked, we’ll see if it only worked on the short term (like BOJ interventions) or it has a sustained effect (what they really want). Because we have something clear, as long as traders, investors, bankers all over the world continue seeing the CHF as a reserve currency (because of the debt crisis, etc), sooner or later the market will lead to renewed franc gains, that’s how the market works.

In the meanwhile, I will wait for clearer market conditions on all CHF crosses. And as soon as I have something, I’ll let you know.

Trade Safe!

Raul Lopez
Forex Course
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forex, SNB, trading

CHF and JPY are both appreciating, which one is stronger?

Both, the BOJ and the SNB have expressed their concern on the on-sided movements of their currencies (JPY and CHF respectively). Both of them are strong and these are the main reason why I think both of them are appreciating:

CHF: the CHF is being used as a reserve currency (debt crisis on some European countries, growth conditions, and others).

JPY: I have no clue, I don’t see a fundamental reason, but hey, the market is the market and if it’s appreciating it’s because the demand is increasing (from China perhaps?)

But which one do you think is stronger?

Answer: LOOK AT YOUR CHARTS… I’m kidding :)

Take a look at this chart:

Over time, looks like the CHF is stronger than the JPY, there is just small retracement after the SNB expressed their concern.

Trade Safe!

Raul Lopez
Forex Training
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BOJ, CHFJPY Analysis, intervention, SNB