Tuesday, September 06, 2011

The Euro has found an anchor.

Swiss Stocks Jump as Central Bank Imposes Ceiling on Franc Rate

The franc weakened as much as 8.7 percent against the euro as the Swiss National Bank set a minimum exchange rate of 1.20 per euro and said it will defend the target with the “utmost determination” if needed.

That last bit means, buying euros "with the utmost determination." Ultimately this seems a move that is antagonistic to the monetary union. An interesting week lies before us.


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