- The Swiss central bank took everybody by surprise, but unlike Peter Schiff, we don’t see much ‘victory’ in their decision to stop pegging the franc against the euro.
- It’s not the ‘regime change’ that is needed as it’s only likely to reinforce deflationary forces in Switzerland itself.
- Other things being equal, it leads to further euro weakness, until the markets have a firmer grasp on the Greek issue and the size and scope of the QE package