Eur/Chf

I agree with Martinghoul - if you have monetary autonomy, and you are genuine about devaluing the currency, it's a simple three-step process:

1. Open file called "local currency.doc"

2. Control + P

3. Sell currency from step 2 and use proceeds to buy the currency that you want to appreciate.

 

how's that work when USD JPY and CHF all do it at the same time?

 

Then the central bank who was most aggressive would "win" the depreciation contest.

Also as you would be aware, CHF is targetting EURCHF of 1.20 or higher, which is only indirectly related to the USD via the EURUSD exchange rate.

 

The banker with the fastest fingers wins

 

well, I was certainly wrong about EUR/CHF. I didn't think SNB could do it for long. But those boys are serious. Everybody wants a good low currency, but at some point it can get too low. Not sure they will follow it down. I think they may wait till it comes back up and then resume.

I'm flirting around with short AUD/CHF vs short EUR/AUD. Every now and then it works out, but I don't know if there is any kind of a trend developing.

Lot of if's and unknowns.

I'm sure there is some serious EUR/CHF trader out there that is taking candy from the baby. It's got to be a lot easier when the CB tells you exactly what they are going to do (and they actually do it.)

 

You JUST talked about how EUR/CHF is going down and thinking SNB might wait til it comes up before pounding it again... and then you go on to create a EUR/CHF synthetic short.

What gives dude? Need help understanding currency exposure?

 

probably, but keeping score in USD is not that simple. The AUD/CHF and the the EUR/AUD is just off and on, nothing serious yet. Otherwise, all I'm trading right now is AUD.

It was a great ride up, now the chop, and probably the chop all the way back down.

Easy money is over.

I'm already long enough USD.

 

Please can you elaborate more in trading bank banter regarding the peg and or other SNB actions? I am very interested and want to learn more.

 

well, the jist of it is, SNB got tired of CHF being so strong. It costs like 8euros to buy one beer in Switzerland. So they decided to sell chf and buy euros or anything else for that matter to keep EUR/CHF pegged at about 1.20. and they do this on an ongoing basis.

so now most anybody trading EUR/CHF is trading for very small moves

But who knows what will happen if the euro falls apart