07/18/2023 - Yra Harris: So Many Piles of Dry Tinder
“Why is the Swiss franc so strong against the dollar, as well as many other currencies? The current dollar/Swiss rate is challenging the January 12, 2015 weekly close of 0.8588, which was the week the SNB pulled the floor out from under the Eur/Chf cross, sending the Swiss franc soaring as the market had been heavily short FRANCS.
Yes, the dollar has been under pressure for a few weeks but why the Swiss with its interest rates of 1.75%? It may be that the SNB is SELLING some of its equity holdings (Apple and others) in an effort to take advantage of the recent global equity rally. When the SNB does QT they are selling assets that have generated huge profits, unlike the FED and the ECB, which own sovereign debt that is severely underwater.
We won’t know if this THEORY holds until we see the next release of the SNB’s balance sheet but something to watch. The Swiss may be the world’s greatest alchemists as they printed money and purchased real assets/corporations.”
