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Bobbys Corner-Open Market-Aug.15.2011

Good Morning:

The CHF took center stage as we open up a new week of trading.
Speculation that the Swiss National Bank is in serious negotiations with the ECB to peg the CHF against the EUR caused the currency to lose some steam.
As the SNB looks for alternative ways to stem the rising CHF-and seeing that direct intervention has not been working, (market participants estimate that the SNB spent 30 billion CHF on intervention last year).
If a peg against the EUR is even possible, it still remains questionable in the marketplace.  The prospect of a peg has already had a effect on the FX markets, and we await to see further effects in the near term.
Even though the rise of the CHF has not had any enormous effect on the Swiss economy-monetary officials are concerned that any continued CHF strength could undermine the country’s critical export business, and cause a period of deflation.

Worldwide equity markets were and are higher at this time.  US Futures are also higher.

Oil is up and Gold is down about $6/oz.

HAVE A GREAT DAY & GOOD LUCK