16 Jan 2015
USD/CHF takes a breather after SNB shock
FXStreet (Córdoba) - The Swiss franc is taking a breather on Friday after a wild, outstanding rally triggered by the SNB shock decision to remove the cap on the currency on Thursday.
USD/CHF fell thousands of pips in a matter of hours and hit its lowest level since 2011, with some platforms marking lows at the 0.7360 zone. However, the dollar managed to take back some losses and stabilized in a wide range within 0.86-0.88 over the last hours. At time of writing, the pair is trading at the 0.8750 area, up 3.85% on the day, but still 14% below yesterday’s highs.
On Thursday, the Swiss National Bank decided to remove the EUR/CHF 1.20 floor set up in September 2011 and to cut further the interest rate to -0.75%, triggering unprecedented moves across financial markets. Besides stunning appreciation of the Swissy, the nation’s equity index fell to 13-month lows, while the yield on 10-year Swiss government bonds fell below zero for the first time ever on Friday.
USD/CHF fell thousands of pips in a matter of hours and hit its lowest level since 2011, with some platforms marking lows at the 0.7360 zone. However, the dollar managed to take back some losses and stabilized in a wide range within 0.86-0.88 over the last hours. At time of writing, the pair is trading at the 0.8750 area, up 3.85% on the day, but still 14% below yesterday’s highs.
On Thursday, the Swiss National Bank decided to remove the EUR/CHF 1.20 floor set up in September 2011 and to cut further the interest rate to -0.75%, triggering unprecedented moves across financial markets. Besides stunning appreciation of the Swissy, the nation’s equity index fell to 13-month lows, while the yield on 10-year Swiss government bonds fell below zero for the first time ever on Friday.