Thursday, March 12, 2009

Happy

Macro Man can feel the knee starting to straighten out already. He's been running long a bit of EUR/CHF as a hedge against his other (non-performing) positions, and for the first time his career, a central banks has intervened at exactly the right time and place for him.

Welcome to the wonderful world of QE, SNB-style:
For at least this afternoon, happy days are here again!

(Though whether Switzerland's trading partners agree is a different question.)

11 comments:

Ian said...

JPY next? It reversed bigtime against the dollar this morning...

Macro Man said...

I'm hoping it's the MAS......

Mr. Simple Sense said...

begger thy buddy always seems to end in tears--and make no mistake about it that is what this is--buy usd against everything as first leg--and use your $$$ to buy a seat at the g-20 pre game talks this weekend its gonna make the WWF look like a tea party

Anonymous said...

I share the happiness and my knee feels better too, i'm off to buy a mountain bike courtesy of the SNB

http://farm4.static.flickr.com/3553/3348496811_eaf71c9dca_o.png

mr. bad taste

Ian said...

Wow look at JPY go...

SD said...

MM, not sure I got you right, but what's the relationship between JPY weakness and MAS (and SGD weakness at the same time?) ? You see this as a shift in the SGDNEER band? At this time of day? Thanks for the knowledge! Wish you a fast recovery!

Macro Man said...

No, I'm saying that I hope the MAS is next in weakening its currency, at the next MPS next month. They would clearly NOT shift the NEER in the middle of the night. Clearly, though, some punters are now betting that the MAS (and BOJ, for that matter) may well enter the currency-weakening fray at some juncture...

Anonymous said...

Good for you MM. Missed the move personally but its reverberations are certainly helping. Don't think the BoJ will do anything up here, crazy round trip today tho.
Agreed with Mr SS that this doesn't bode well for G20 and race to the bottom dynamics.
Have a good one, JL

Anonymous said...

I'm not sure EU countries see this as a beggar thy neighbour policy. There's probably some sense of relief instead, as all those Swiss Franc loans in Central Europe become more manageable.

Anonymous said...

The swiss move probably saved their banks and made a lot of eastern europeans cheer. Austrian CB certainly wishes that they had the Schilling still...

Forex Watcher said...

Ian, that is what I am hearing from a trading desk connected source.