Happy 5th birthday to Swiss Francs
Happy 5th birthday to Swiss Francs Exactly 5 years ago on January 15, 2015, when the Swiss National Bank (SNB) removed the Swiss franc peg from the euro and allowed the franc to float. EUR/CHF fell from the floor of 1.2000 down to a low near .9650 in a heartbeat, taking out longs who believed the SNB would commit to the 1.2000 floor. Traders, and a few brokers, were wiped out of business on that day as they didn’t have the funds to pay their margin calls From early October 2019 until early December 2019, USD/CHF was stuck in a range between .9850 and 1.0025. Twice the pair tried to clear the 1.000 level, only to close back below it. Over the last 2 days, both EUR/CHF and USD/CHF have made new long-term lows. One of the reasons for this could be that the SNB has intervened less. However, one should never forget the lesson the markets learned 5 years ago today – that they could be much lower and much more quickly!
