The Swissie is -7.2% vs. the dollar and -7.7% vs. the euro after the Swiss National Bank sets a...


The Swissie is -7.2% vs. the dollar and -7.7% vs. the euro after the Swiss National Bank sets a minimum exchange rate of 1.20 francs per euro. "The SNB... is prepared to buy foreign currency in unlimited quantities," it says. "If the economic outlook and deflationary risks so require, the SNB will take further measures." (PR)

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Comments (6)
  • Derek A. Barrett
    , contributor
    Comments (3554) | Send Message
     
    WOW

     

    They are pissed
    6 Sep 2011, 04:32 AM Reply Like
  • bkpark
    , contributor
    Comments (331) | Send Message
     
    Aye. One might naively think that they'd be happy that they can buy as much EUR or USD as they want with a currency they can print as much as they want ...
    6 Sep 2011, 04:42 AM Reply Like
  • Herr Hansa
    , contributor
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    I've never seen spikes in currencies like this. Amazing.
    6 Sep 2011, 04:36 AM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
     
    Wow is right..look at the moves in Gold and Silver at that time....they are now to only safe haven left...but they dropped big...???? so the world markets are now run by central banks and HFT computers....great
    6 Sep 2011, 07:33 AM Reply Like
  • bkpark
    , contributor
    Comments (331) | Send Message
     
    Look at the timing. It dropped 30 minutes or so *before* the announcement (probably reflexive inverse correlation to European markets that were up at open). Around the time of announcement (I only have the timestamp for the SA blurp; I don't know the exact timing of the actual press release), both went *up*.

     

    If you want to blame the algos, better bet is probably the unrelated forex rates, such as CAD/USD or EUR/USD. Strange spikes are seen on those charts (all of which were erased within an hour; the only persistent change seems to be on JPY and CHF charts).
    6 Sep 2011, 08:38 AM Reply Like
  • Herr Hansa
    , contributor
    Comments (3130) | Send Message
     
    Goldman Sachs were reported to be setting big EUR/CHF positions prior to the announcement from the Swiss National Bank. That is part of the move explanation. Some Forex traders actually caught that, but at the time they didn't know why it was happening.
    6 Sep 2011, 02:16 PM Reply Like
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