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15 Jan 2015
Swiss Franc soars after SNB shocks the markets – Investec
FXStreet (Barcelona) - The Investec Team notes that the Swiss National Bank shocked the euro after deciding to get rid of EUR/CHF floor, which sent the Swiss Franc soar higher about 30% against other currencies.
Key Quotes
“In a surprise announcement this morning the Swiss National Bank ended its 1.20 EUR/CHF protective floor and cut interest rates to -0.75%.”
“The decision is having a substantial impact on currency markets with the CHF seeing appreciation of over 30% against other currencies.”
“As a result, other currencies are awash with CHF related trade, the Euro in particular suffered as liquidity in trading fell, falling as low as 1.1580 versus the Dollar before seeing strong retracement. GBPEUR has also witnessed significant volatility and is trading above 1.30.”
“For now large bids have returned in EUR/CHF around parity, and speculation is the SNB may begin to protect again but at a lower level.”
Key Quotes
“In a surprise announcement this morning the Swiss National Bank ended its 1.20 EUR/CHF protective floor and cut interest rates to -0.75%.”
“The decision is having a substantial impact on currency markets with the CHF seeing appreciation of over 30% against other currencies.”
“As a result, other currencies are awash with CHF related trade, the Euro in particular suffered as liquidity in trading fell, falling as low as 1.1580 versus the Dollar before seeing strong retracement. GBPEUR has also witnessed significant volatility and is trading above 1.30.”
“For now large bids have returned in EUR/CHF around parity, and speculation is the SNB may begin to protect again but at a lower level.”