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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Donald E. Aken who wrote (130)	5/18/1998 2:00:00 PM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 3536

Donald, I believe that the Swiss Franc is much more likely to get buffeted by any tensions between the dollar and the Euro. The reputation the Sfr has with newsletter writers is largely a legacy of its strict bank secrecy laws and hard money policy of the old days. The bank secrecy laws are no where near as comprehensive as they once were. The Swiss National Bank still has a lot of credibility but no more or less than the Fed. The Sfr is rapidly settling into the role of a satellite of the Euro. The SNB has made it very clear that they will target that relationship. The importance of this was brought home to them earlier in the decade when money seeking a safe haven from concerns about the Euro caused the franc to strengthen sharply against the mark and prompted a severe recession. So the SNB will work actively against the safe haven status underming their competiveness vis a vis Europe. Henry