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A Crazy Week In Charts

A Crazy Week In Charts

What a week of utter craziness! After last week's inexhaustible flurry, we thought we'd see some respite. But no, the events just ratcheted one notch higher; with volatility in the financial markets at year-to-date highs and global developments on geopolitical, financial and economic fronts, we can barely keep up the the trance that is raving. So rather than using narrative to summarize what has been a very busy week, we thought of using charts to highlight the key talking points of the past 7 days or so.

This edition of the Daily Grail will be the first ever to feature a compendium of graphics and charts but we might indeed start to adopt a similar format in future editions for time constraints. We have tried to broaden the subjects covered under each piece while ensure each note remains relevant to our readers.

Swiss Franc Rises Most On Record As SNB Kills Currency Peg

Swiss Franc Rises Most On Record As SNB Kills Currency Peg

We are shocked, shell shocked in utter dismay; while we were still updating our memorial piece on the Charlie Hebdo attacks news so big and unprecedented broke, that we had no choice but to shelve all immediate plans and cover this extremely nerve wrecking story. In our more than 6 years in the financial markets, we have NEVER seen anything as ginormous as the move in the Swiss Franc has been. Something as innocuous as decoupling one's currency after 3 years of the status quo has turned out to be what will go down the history books.

The bottom line is crystal clear, almost nobody had guessed the SNB's hand in today's shocking move; and we suspect the SNB better gear up with some physical protection as we smell Molotov cocktails and napalm bombs when trading closes later and the full scene of the vicious carnage is laid fully bare for all to see.

Jim Reid: Volatile Volatility

Jim Reid: Volatile Volatility

What makes this move shocking is that just last month the SNB committed themselves to preventing their currency appreciating beyond 1.20 to the Euro and vowed they would enforce the policy with "the utmost determination". The risk for the global financial system is that if the SNB can make such a dramatic u-turn could other central banks follow at some point. We're not so concerned here as their situation is arguably a lot different to the ECB. The ECB might actually look at the wider market moves yesterday and be scared to disappoint.