Swiss Franc – Quo Vadis ?


A picture tells a thousand words. From its high in 2008, the EUR has lost almost one third of its value… ONE THIRD vis-a-vis the CHF. Even more alarming: the USD is 44 percent cheaper than the CHF than it was 10 years ago…

Yesterday’s intervention by the Swiss National Bank was meager at best. Today, the press is challenging more evasive actions – but there is not a consensus for what is the “right” thing to do.

Here is the SNB press release from yesterday:

http://www.snb.ch/en/mmr/reference/pre_20110803/source/pre_20110803.en.pdf

The actions taken were not enough. Despite them, the franc rebounded by the end of the day. Look East to Japan. Ditto. There is some speculation that there could be a coordinated intervention … but this is not probable considering the overall importance (i.e., lack thereof) of the CHF in the world forex markets…

So, what is your opinion? What will happen? What will the effects be on Swiss business? On Swiss consumers?

Should the SNB intervene again, this time more heavily? How? How about the FED and the ECB?  With interest rates already at zero, what can be done other than pump more money (print it??) onto the market?

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