Monday, October 25, 2010

CHF: SNB successfully diversifies its reserves away from the euro

Friday's quarterly balance of SNB showed the success of the bank to diversify its assets euro, which fell from 70% to 56%. This ratio of rates in a more balanced in accordance with 50-60%, which was last year right before the SNB began a policy of intervention to reduce the cost of CHF. A pair of EUR / CHF has remained fairly stable against the backdrop of G20 finance ministers over the weekend, returning to levels not seen for three months. Otherwise, at a low level of volatility of the stock, should closely monitor the Fed's meeting next week. The Swiss franc had a fairly stable inverse correlation with the volatility of assets this year, and the VIX itself is still relatively low and vulnerable to any sharp increase in the size of disappointment plans Fed quantitative easing in November.

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