As a result of the Greece crisis (among other things), the euro has tanked. That left the door wide open for the Swiss franc and its related exchange traded fund to hit new records, but not everyone is rejoicing.
Amid Greece’s mounting debt worries, the euro has lost much of its allure. That eventually sent the euro down to an all-time low against the Swiss franc this week, explains Fabio Alves for The Wall Street Journal.
But the Swiss franc’s new strength is being called a burden for Switzerland’s economy and export industry and cause for concern, its economy minister said this week.
That concern aside, the Swiss National Bank is making no effort to intervene on the currency’s quick rise. The bank was heavily involved in fighting the franc’s appreciation over the last year, but backed off in December. It will now only step in if the franc’s strength leads to any risk of deflation, Reuters reports.
- CurrencyShares Swiss Franc Trust (NYSEArca: FXF)
- CurrencyShares Euro Trust (NYSEArca: FXE)
- WisdomTree Dreyfus Euro (NYSEArca: EU)
Disclosure: Read the disclaimer, Tom Lydon is a board member of Rydex|SGI.
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