Tag: Safe HavenSort
The Euro has been bullish against the Swiss Franc, since the Swiss National Bank decided to ease its overvalued currency. The SNB intervention took place on Aug.3rd.2011, but we didn’t notice any progress till Aug.11th.2011 … when the currency pair surged 650+ pips. Intraday bias for the EUR/CHF remains on the upside, as long as the 1.0685 minor support line is not broken.
The U.S dollar is surging against all the majors this morning, since the French-German summit last week produced little results to curb the EU debt and bank crisis. The Yen and Swiss Franc played a major role during the U.S and EU economic troubles, but it seems like the Swiss Franc has been weakened after the SNB (Swiss National Bank) decided to intervene.
EUR/USD declined to the 1.3968 low, breaking below the 1.4020 major support line. Intraday bias remains on the downside, as long as the 1.4344 minor resistance line is not broken. On the downside, if the 1.3968 low is broken it will continue the bearish sentiment to the 1.3854 major support line.
EUR USD has dropped to the 1.3524 low, but recouped back to the open position. Intraday bias remains on the downside, as long as the 1.3860 major resistance line is not broken. On the downside, if the currency pair settle below the 1.3447 major support line it will boost the bearish sentiment and target the 1.3243 major support line.
Currency, like all forms of abstract value, is based on trust. And trust itself is based - except among the most naïve - on experience, and the repetitive demonstration of fidelity, whether positive or negative. At present, the US dollar, which had experienced a gradual rise during the 20th Century to the position gained well into the Cold War of being the trading world’s reserve currency.
Answering My Children: What Comes After a Trillion?
The innocence and knowledge of a child is sometimes much more clearer than our insights. My young daughter asked me what comes after a Trillion dollars. My son answered a Zillion. I had to interject and add that does not exist ( yet). Maybe U.S. Treasury Secretary Timothy Geithner will invent a new number the way he is going.
Investors see the rest of the world collapsing, and the yen & SF franc are no longer a safe haven.The Swiss franc has suffered from a weakening Swiss financial system and threats of intervention by the central bank to push the currency lower against the euro. More so one needs to be aware the obligations of the top three Swiss banks have debts greater than 8X the GDP of Switzerland.
Gold investing - Gold Bug Ted Peroulakis of Investors Daily Edge suggests that “you should own some gold in your portfolio as an insurance policy…” He recommends this Gold EFT as a safe haven during the global financial crisis, because no matter what happens with the markets, gold will always sh