CHF appreciated a neat 30 % to a 0.85 per euro after that unexpected shocker of a Swiss national Bank move.
On to a market that was just waiting to whine, that was the flogging of a 100 whiplashes.
There was a reiteration of profitability interests rather than global concerns. The restoration of CHF as a global safe haven may be about the one benefit that might ensue. The tourism and export businesses in Switzerland will suffer in this sudden rise. Asian travelers to Europe might defer!!!
Most worrying is the impact on CHF designated borrowings. Those who have taken loans in Swiss Francs (at the very low interest rates) will be knocked off at this unexpected appreciation of the currency and the NPAs of banks across the globe will take a big hit. Swiss Franc funding for repayment will be prohibitively expense. Bank shares in Europe and Asia may be under pressure throughout the day until a clear picture emerges.
Views expressed without risk or responsibility.
On to a market that was just waiting to whine, that was the flogging of a 100 whiplashes.
There was a reiteration of profitability interests rather than global concerns. The restoration of CHF as a global safe haven may be about the one benefit that might ensue. The tourism and export businesses in Switzerland will suffer in this sudden rise. Asian travelers to Europe might defer!!!
Most worrying is the impact on CHF designated borrowings. Those who have taken loans in Swiss Francs (at the very low interest rates) will be knocked off at this unexpected appreciation of the currency and the NPAs of banks across the globe will take a big hit. Swiss Franc funding for repayment will be prohibitively expense. Bank shares in Europe and Asia may be under pressure throughout the day until a clear picture emerges.
Views expressed without risk or responsibility.
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