Tuesday, 6 September 2011

SWISS Bank intervention!

We had a huge move in the Swiss Franc today as the SNB said they are:
- Ready to buy foreign currencies in unlimited amounts, as the Swiss Franc is way overvalued.
- They say it will defined its FX target with UTMOST DETERMINATION.
- SNB Says Franc appreciations posing deflation risks
- SNB sets minimum exchange rate at 1.20 per Euro


This caused some of the biggest moves I've seen with the Eur/Chf rising over 800 pips and usd/Chf by some 500 pips. The SMI also rallied by up to 5% which in tern dragged other indices up with it.

Below is the chart of the EUR/CHF

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