As was expected, Uncle Ben disappointing many traders signaling that they may be no further stimulus yet.However,It was the Swiss Franc – not the Euro or the U.S. Dollar – that found the most selling pressure in the wake of Federal Reserve Chairman Ben Bernanke’s speech earlier today. Speaking at the Jackson Hole Economic Policy Symposium, the Chairman of the Federal Reserve signaled no further easing measures, but did note that at an extended meeting in September, the Federal Open Market Committee would discuss further policy options.
Also making the rounds, in terms of what could have propelled the Swiss Franc to lows against both the Euro and the U.S. Dollar in just a few minutes, was a rumor that Swiss Bank UBS would begin charging clients for Franc deposits. Whether or not the rumor holds any water remains to be seen, but the situation should be monitored, because if it is a Swiss National Bank mandate, then the implications will extend to other Swiss Banks, and could drop the Franc lower (this has since been refuted since the original report suggested so).
In other news, Japanese Prime Minister Naoto Kan resigned overnight after months of criticism over his leadership during the March 11th earthquake and subsequent tsunami that sparked the nation’s deepest postwar economic crisis. The greenback should remain well supported in light of the fact that the Fed will not be implementing any further dollar diluting policies in an effort to stimulate the ailed economy. Accordingly the pair may continue to trade within its recent range.
No comments:
Post a Comment