Skip to main content

Will the Swiss Stabilize the Euro?

The euro keeps diving to new lows and currency traders are hoping someone, (perhaps the Swiss) will step in to stop the bleeding

The euro keeps diving to new lows and currency traders are hoping someone, (perhaps the Swiss) will step in to stop the bleeding.

Rumors that the Swiss will move to stabilize the currency have stemmed the tide for now. The euro dropped to $1.2176 against the dollar yesterday, a new low, but has bounced back to around $1.2342 in today’s trading.

Nicolas Haymoz, a spokesman for the Swiss central bank, declined to comment on currency market developments. The bank has said in the past that it would act to prevent any excessive appreciation of the Swiss franc.

“There is a lot of speculation that there is a concerted effort to put a floor into the value of the euro,” said Tom di Galoma, the United States head of fixed-income rates trading at Guggenheim Partners. But the decline in stocks reflected “a lack of confidence in the overall plan.”

He added, “I think the longer-term view is that the euro goes lower.”

Shares Fall as Germany Moves to Restrict Trades [NYT]


Carl Levin is Seriously Pissed at the Swiss

Senator Carl “Shitty Deal” Levin has blasted the Swiss government withholding the names of withholding the names of certain UBS clients suspected of opening Swiss bank accounts to evade U.S. taxes. The Swiss lower house voted today to reject a U.S.-Swiss treaty that would have turned over about 4.450 out of the 52,000 UBS clients the Uncle Sam suspects of tax evasion.

Euro-Zone Stays Growth-Free

The euro-zone is going for a fourpeat.

Brickell Continues to Defend OTC Derivatives

Mark Brickell has worked for over a decade to keep government regulators out of the over-the-counter derivatives market. He hasn't given up yet. The former JPMorgan executive and who served as chairman of the International Swaps and Derivatives Assoc., is out today with a piece in the WSJ warning against the dangers of increasing government oversight of OTC derivatives. Swaps are benign and help big companies like McDonald's hedge its currency risk at a low cost, he argues.

Inside George Soros' Famed Currency Trade

Inside George Soros' Famed Currency Trade