Closing Prices From Yesterday
History was made.
Switzerland detached itself from the Euro. This is historic and forced the currency to move down as much as 20% at one point. The Swiss Frank (CHF) has been attached to a fixed rate of 1.20 to the Euro; however, in a unexpected announcement Switzerland wanted away from the Euro. With the concerns over the EU easing combined with a Judge’s decision to let the EU buy bonds Switzerland felt it could not take the risk anymore.
Oil fell a little over $2.00 a barrel and gold ran up 2% to 1,265 because of this news.
The news also rattled the US markets as investors/traders spent the day see-sawing the markets up and down trying to determine what effects this will have on the US.
Bond dove again, this time the 10 year bond closed at 1.775% yield. This is insanely low, but the move does make “temporary” sense when compared to European rates. The Swiss, for example, have mortgage rates of 1.8% on 10 year fixed home loans.
– In all it was just another Frustrating January day that made no sense, and the markets could not figure out what to make of things. But this creates
Thank God I’m Flat
The 6th day in a row down? At 11”00pm eastern futures were down -18 implying a -150 point move, yet oil was up $0.50. Europe is all over the place after the Switzerland currency issue as traders try to figure out what the next surprise is going to be.
In short….I haven’t got a clue.