Open trading account 
A little note from me today after the month end flows which were hopefully successful for all of you.
This week on Sunday, the Switzerland gold referendum will be eyed most in the forex world.
Why is this referendum so much important and how may it affect the markets?
We got to see first what is this all about:
1. Referendum will enforce the SNB to hold all gold reserves in the country.
2. Gold reserves should not fall below 20 %.
3. The referendum will enforce SNB to not sell gold.
If the referendum may pass in favor of the pro gold voters, most analysts agree that all CHF crosses do not take more damage as they may take if the referendum is not passing.
As i see it personally, there are somethings which are pretty obvious for me.
First of all, we are retail traders. Our “little” orders (even big specs) regardless of the direction are not a thread to a central bank like the SNB. Press reflects that Mr. Thomas Jordan is willing to defend the EUR/CHF floor as this makes IMO sense for a country like Switzerland which is highly depended to exports.
Secondly, polls across the newswires are reflecting that the swiss referendum, which was slightly more a “yes” at the beginning, now there is a little more weight to the “no” side. This does not mean that the referendum will fail, but indicators point to a negative outcome.
At least, i will remain a CHF bear and enjoy staying long EUR/CHF because my bet is that all this market chatter about an “if yes” is purest of scaremongering. As long i trade i have never fought a central bank and even not consider doing something else then comply with money policies of all central banks.
The outcome of the referendum is not sure yet. But another even interesting fact is also that some MT4 brokers start to increase margin requirements (e.g. 50:1 from 100:1) which for me is a first warning sign. Why brokers need to defend themselfes if there is "no danger" that a thousands of EUR/CHF longs may be successful? Well you do the math.......
However, i hope everybody of you people got an own good and wise prediction and personal view about the situation.
So all my best wishes and hopefully you all spend a nice weekend.
Take care on the coming battlefield and don’t try to catch falling knifes.
This week on Sunday, the Switzerland gold referendum will be eyed most in the forex world.
Why is this referendum so much important and how may it affect the markets?
We got to see first what is this all about:
1. Referendum will enforce the SNB to hold all gold reserves in the country.
2. Gold reserves should not fall below 20 %.
3. The referendum will enforce SNB to not sell gold.
If the referendum may pass in favor of the pro gold voters, most analysts agree that all CHF crosses do not take more damage as they may take if the referendum is not passing.
As i see it personally, there are somethings which are pretty obvious for me.
First of all, we are retail traders. Our “little” orders (even big specs) regardless of the direction are not a thread to a central bank like the SNB. Press reflects that Mr. Thomas Jordan is willing to defend the EUR/CHF floor as this makes IMO sense for a country like Switzerland which is highly depended to exports.
Secondly, polls across the newswires are reflecting that the swiss referendum, which was slightly more a “yes” at the beginning, now there is a little more weight to the “no” side. This does not mean that the referendum will fail, but indicators point to a negative outcome.
At least, i will remain a CHF bear and enjoy staying long EUR/CHF because my bet is that all this market chatter about an “if yes” is purest of scaremongering. As long i trade i have never fought a central bank and even not consider doing something else then comply with money policies of all central banks.
The outcome of the referendum is not sure yet. But another even interesting fact is also that some MT4 brokers start to increase margin requirements (e.g. 50:1 from 100:1) which for me is a first warning sign. Why brokers need to defend themselfes if there is "no danger" that a thousands of EUR/CHF longs may be successful? Well you do the math.......
However, i hope everybody of you people got an own good and wise prediction and personal view about the situation.
So all my best wishes and hopefully you all spend a nice weekend.
Take care on the coming battlefield and don’t try to catch falling knifes.