Where is the SNB

The euro has collapsed through the CHF1.40 level where the SNB had thought to be defending. It quickly slumped to CHFCHF1.3865 before finding a bid. This has helped drag the euro below $1.21. Strains are growing in the European bond markets and Eastern European currencies are being hit hard. It is difficult to see exactly what was the trigger, but all capital markets have been impacted. Equity markets have slumped. Even the Canadian dollar, which posted very good employment has gotten hit. It makes the market's reaction to the US employment data due out shortly more difficult to anticipate. Still the price action, with new multi-year lows in the euro, will continue to buffer dollar sentiment and the relative safety of US Treasuries.
Where is the SNB Where is the SNB Reviewed by magonomics on June 04, 2010 Rating: 5
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