Swiss Franc Soars After SNB Drops Cap on Currency
January 15th, 2015Via: Reuters:
The Swiss franc soared nearly 28 percent against the dollar on Thursday after Switzerland’s central bank dumped a three-year-old cap on the franc’s value against the euro, sending shockwaves through currency markets and pummelling traders who had bet against the franc.
The euro plunged as much as 30 percent below the 1.20 cap to a record low of 0.8500 francs per euro at one point before bouncing off its session low. The dollar plummeted to 0.736 francs, its lowest since 2011, before also paring losses.
Broader concerns about the euro sent it to its weakest in 11 years against the dollar.
The swings in the franc were the biggest since most major currencies moved to free-floating regimes in the 1970s. Dealers said they had seen a number of major investors lose as much as 20 percent before managing to complete trades to close their bets on a stronger dollar against the franc.
Related: Gold Jumps 3 Percent to 4-Month High After SNB Move
Some interesting insights here:
http://redefininggod.com/2015/01/globalist-agenda-watch-2015-update-4-the-swiss-national-bank-and-the-fed-mistake/