2 FX Brokers Suffer "Significant Losses" After SNB Surprise, "In Breach Of Regulatory | Reviews of Brokers and Data Feeds

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2 FX Brokers Suffer "Significant Losses" After SNB Surprise, "In Breach Of Regulatory

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montanajtt View Post
@GFIs1 ...you live in Switzerland so you have some chf as do I. What are you going to do with them? I still didn't bought eur because my view is can't go back to 1,2 with the current outlook and if pull back in a 1,1 1,15 range I would sell more eur.

But nobody knows what draghi will say to the next meeting and even if a QE is given for granted markets can be unpredictable on how they will react on it, they either may like it or be disappointed because expect and are pricing more.

So a good money management rule would suggest to sell at least half position, wait the meeting and then make another valuation. I think that under 1 against eur Switzerland economy can suffer a lot, nevertheless it could also go down up to 0,8 and after that SNB could start buying eur as an extraordinary measure, so I think this is a scenario to consider too.

I really have some strong doubts on what doing, what is your view?

OK - the situation (my view only) is easy to describe: As long as mister SNB Jordan says it overshooted after the lift off the support - this will not be true. Prices will not come back easily. As nearly all swiss end clients bought the same products as some km behind the customs and paid up to 30% more - they are happy things are settling and they get the products reasonably priced. I mean they paid for years much more than all in other countries.
Recession or not will be of no big interest for most of the swiss.
Now to the economic view: Money flows into save havens - always. Looking for stable ground. This is given in Switzerland.
Thus the EUR will fall further to important currencies in the mid term. Quite a lot of money set into the Euro will be taken out and this weakens the Euro even more.
Many funds are not allowed to take high risks so they need to reduce positions with higher risks and move them in shallow water. Many EUR investments will be soon new validated and can come out as high risk.
Real losing countries are to be found in the east of Europe - especially Poland Romania and other where private people
made investments (houses and others) in swiss francs. They will no longer can pay back. And all these debits are directly connected with the Euro.
As economist I am always for having free markets that find the best price at any given moment. As long as a virtual
limit is set (like the virtual 1.20 limit on EURCHF) it does distort markets - for investors, funds, for exporters and for importers.
Now the dust is lifting and some new price range is to be found in this pair.
Draghi will not shake the markets very much next week - as the main explosion with shift is already over...
For the swiss franc we can be happy to be now out of further distortion (maybe) wanted to be announcements by Draghi but the downtrend will not be stopped easily (same as oil).
You asked about my investments. I will get out of all EUR positions totally. And make daytrading investing only short
time and not mid or longterm.
One last point learned: Place investments in parts - and not all with one broker.. Some more broken brokers will
be seen next week... Even if you do not lose your primary money you can first: not take it out and second:
not use it for trading in the interesting markets to come.

Hope this picture helps.

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