The Central bankers of Switzerland have no remorse to its irreverent reversal of policy which saw a trading strangle virtually. Fear seems to be stalking SNB corridors ...The biggest welcome for SNB's decision to cut the strings with the euro must come from the exporters in Europe (read German: BMW, Benz, Volkswagen...) .
Euro now certainly looks south and those who have not so far unwound the euro positions may do that soon enough so that they escape a further fall. That should see a flight into safe havens. Dealers will cut losses. A falling currency will fall quite a bit in the current scenario. Banks need time to take stock of CHF funding positions of client.
Fear of Rolex/ Omega being hit should not worry the Swiss bourses as these are luxury brands ; the wealthy buy more of more expensive stuff; luxury brands thrive on higher prices; luxury brands are inelastic to price fluctuations. Tourism might see a drop.
Views expressed are without any risk or responsibility.
Euro now certainly looks south and those who have not so far unwound the euro positions may do that soon enough so that they escape a further fall. That should see a flight into safe havens. Dealers will cut losses. A falling currency will fall quite a bit in the current scenario. Banks need time to take stock of CHF funding positions of client.
Fear of Rolex/ Omega being hit should not worry the Swiss bourses as these are luxury brands ; the wealthy buy more of more expensive stuff; luxury brands thrive on higher prices; luxury brands are inelastic to price fluctuations. Tourism might see a drop.
Views expressed are without any risk or responsibility.
No comments:
Post a Comment