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15 Jan 2015
USD/CHF slumps after SNB surprise
FXStreet (Córdoba) - USD/CHF lost more than 300 pips in a matter of minutes after the Swiss National Bank announced it will scrap the EUR/CHF floor and set a -0.75% rate for sight deposits.
The Swiss strengthened broadly following the measure and dragged USD/CHF from near 1.0200 to below 0.9900. The pair bottomed out at 0.9878 before bouncing and it is currently trading at the 0.9955 zone, recording a % loss on the day.
Meanwhile, EUR/CHF broke below 1.2000 for first time since 2010 when the bank introduced the measure, and dropped almost 600 pips to a low of 1.4020.
The SNB said that in current circumstances, i.e. divergent monetary policies, euro weakness, enforcing and maintaining the minimum exchange rate for EUR/CHF is “no longer justified”.
The Swiss strengthened broadly following the measure and dragged USD/CHF from near 1.0200 to below 0.9900. The pair bottomed out at 0.9878 before bouncing and it is currently trading at the 0.9955 zone, recording a % loss on the day.
Meanwhile, EUR/CHF broke below 1.2000 for first time since 2010 when the bank introduced the measure, and dropped almost 600 pips to a low of 1.4020.
The SNB said that in current circumstances, i.e. divergent monetary policies, euro weakness, enforcing and maintaining the minimum exchange rate for EUR/CHF is “no longer justified”.