After the disappointing US current account data, traders have realized which countries have strong trade balances, namely Germany and Switzerland (here our details on the ever rising Swiss trade surplus). Both the euro and the Swissie strongly rose against the dollar. Due to Abe's pressure on the Bank of Japan the yen lost, too. Additionally gold fell down to 1673. The EUR/CHF remained nearly unchanged.
Consequently, the Swiss National Bank (SNB) loses nearly 1.85 billion francs in just one day. This is 231 francs, 250$ for each Swiss, more than the average daily gross salary for the working population.
December 18th, SNB memorial day: Today we work for the central bank
We could declare the December 18th, as the day when whole Switzerland needs to work for the central bankers. Unfortunately there might be some more days when the whole country will need to work for its central bank. We warned already before, that the SNB lost 8.4 billion francs, 1.4% of Swiss GDP, in the months of October and November.
These are the SNB positions as of Q3, 2012:
The following is the currency breakdown per quarter:
By George Dorgan, financial consultant, portfolio manager, http://snbchf.com
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