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Cyprus Eastern Forum Index » Exchange Money & Rates » Swiss National Bank pulls plug on euro floor chaos
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Swiss National Bank pulls plug on euro floor chaos 
Post: #1   PostPosted: Thu Jan 15, 2015 12:47 pm Reply with quote
Brizo1983
Joined: 19 Aug 2008
Posts: 81
Pictures: 0

 
Oh dear the SNB today pulled the 1.20 euro floor on the CHF if the CHF loans weren't a huge mess already this really going to set a lot of people back.

Immediately the euro dipped to 1 to 1 meaning no conversion gain whatsoever from euro to franc. If your payment is 500 CHF it's now 500 euros

Equally the GBP dipped to 1 to 1.30 from after recent gains where it was trading at 1.54

The only small glimmer of hope is that are the ECB about to take measures to boost the Euro

It's an unprecedented move that no one saw coming with analysts suspecting that a bigger move in the Euro is about to happen because the Swiss are reliant on a weak currency for exports
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Post: #2   PostPosted: Thu Jan 15, 2015 1:29 pm Reply with quote
pantheman
Joined: 27 May 2006
Posts: 4899
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Location: Ammochostos

 
Looks like Cyprus NPL's just got worst! Crying or Very sad
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Post: #3   PostPosted: Thu Jan 15, 2015 5:31 pm Reply with quote
alan99
Joined: 09 Jan 2006
Posts: 525
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Location: UK and sometimes Cyprus

 
It is possible the euro could weaken again soon.
On 22nd January the ECB are meeting. Many experts are saying they may bring in Quantative Easing , which could weaken the euro. (nothing is certain)
On Sunday 25th January are Greek elections. A Syriza victory could put further strains on the euro.
If you are still in a Swiss franc mortgage you may try to switch back out and do a deal for compensation. See Nigel Howarth's section for a list of law firms and campaign groups.
Alpha Bank seem keen to do a deal.

Alan
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Post: #4   PostPosted: Thu Jan 15, 2015 5:41 pm Reply with quote
Stabilo
Membership Closed
Joined: 05 Oct 2007
Posts: 3192
Pictures: 1
Location: Paralimni / Kapparis

 
alan99 wrote:
It is possible the euro could weaken again soon.
On 22nd January the ECB are meeting. Many experts are saying they may bring in Quantative Easing , which could weaken the euro. (nothing is certain)
On Sunday 25th January are Greek elections. A Syriza victory could put further strains on the euro.
If you are still in a Swiss franc mortgage you may try to switch back out and do a deal for compensation. See Nigel Howarth's section for a list of law firms and campaign groups.
Alpha Bank seem keen to do a deal.

Alan


All the issues you mention are currently factored into the exchange rate based on the markets best guess of the time and level of QE and the Greek election result. To have any idea of which way a currency is going to move you have to have news that nobody else has or a crystal ball.
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Post: #5   PostPosted: Thu Jan 15, 2015 7:27 pm Reply with quote
alan99
Joined: 09 Jan 2006
Posts: 525
Pictures: 0
Location: UK and sometimes Cyprus

 
Stabilo wrote:
alan99 wrote:
It is possible the euro could weaken again soon.
On 22nd January the ECB are meeting. Many experts are saying they may bring in Quantative Easing , which could weaken the euro. (nothing is certain)
On Sunday 25th January are Greek elections. A Syriza victory could put further strains on the euro.
If you are still in a Swiss franc mortgage you may try to switch back out and do a deal for compensation. See Nigel Howarth's section for a list of law firms and campaign groups.
Alpha Bank seem keen to do a deal.

Alan


All the issues you mention are currently factored into the exchange rate based on the markets best guess of the time and level of QE and the Greek election result. To have any idea of which way a currency is going to move you have to have news that nobody else has or a crystal ball.



There is a certain amount factored in to the exchange rate.

For the average chf mortgage holder, it is not so much a matter of playing the currency markets but being :

Aware . Of the economic fundamentals between currencies , especially with today's announcement and the above 2 big events.

Cautious.

Should the average person take out a chf loan now (if your base income is in a different currency ?) I would think , no.

Alan
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Post: #6   PostPosted: Thu Jan 15, 2015 7:43 pm Reply with quote
Stabilo
Membership Closed
Joined: 05 Oct 2007
Posts: 3192
Pictures: 1
Location: Paralimni / Kapparis

 
alan99 wrote:
Stabilo wrote:
alan99 wrote:
It is possible the euro could weaken again soon.
On 22nd January the ECB are meeting. Many experts are saying they may bring in Quantative Easing , which could weaken the euro. (nothing is certain)
On Sunday 25th January are Greek elections. A Syriza victory could put further strains on the euro.
If you are still in a Swiss franc mortgage you may try to switch back out and do a deal for compensation. See Nigel Howarth's section for a list of law firms and campaign groups.
Alpha Bank seem keen to do a deal.

Alan


All the issues you mention are currently factored into the exchange rate based on the markets best guess of the time and level of QE and the Greek election result. To have any idea of which way a currency is going to move you have to have news that nobody else has or a crystal ball.



There is a certain amount factored in to the exchange rate.

For the average chf mortgage holder, it is not so much a matter of playing the currency markets but being :

Aware . Of the economic fundamentals between currencies , especially with today's announcement and the above 2 big events.

Cautious.

Should the average person take out a chf loan now (if your base income is in a different currency ?) I would think , no.

Alan


FSA style jargon:

IMHO, and professional opinion as I was a qualified mortgage broker in the UK, unless you like Russian roulette you should NEVER take out a mortgage in a currency other than your base income currency or have adequate capital to cover potential, significant, currency losses.

That is why the banks were negligent to issue CHF mortgages especially as it involved 3 currencies for many buyers (CHF, GBP and EURO). Their recklessness is costing them, and all of us, dearly now.
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Swiss National Bank pulls plug on euro floor chaos 
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