Updates: Swiss Franc and Silver
Source: Financial Times, Dominic Picarda (9/14/11)
"Central banks have typically enjoyed only temporary success in restraining market forces."
I predicted on April 15—when a pound bought 1.48 Swiss Francs—that sterling would slump to CHF 1.30. It did so in late July and indeed went further, dipping as low as CHF 1.15. The Swiss National Bank's promise to intervene in order to force down the value of the franc has since caused sterling to appreciate sharply to CHF 1.39. While I do not plan to fight this for now, I note that central banks have typically enjoyed only temporary success in restraining market forces. Were the pound to reverse around its 55-week exponential moving average (CHF 1.447), I would be tempted to sell pounds and buy Francs again. . .View Full Article