Just one day after the SNB dropped its bomb, EUR/USD now trades below levels once seen as bold calls for 2015: 1.15.
The fall is very quick and the fresh low is 1.1477. It seems that stopped were tripped.
Update: And the pair eventually recovers and closes well above 1.15
The euro is also falling quickly against other currencies, setting new lows against the pound and the loonie among others.
Update: moves are quick and not unidirectional: after hitting a low of 1.1459 the pair bounces back to 1.1502.
We earlier explained 4 reasons for the EUR/USD breakdown
The most recent push lower came from the US with a better than expected consumer confidence number.
However, the big mover that pushed the common currency lower is the Swiss National Bank. The SNB removed the floor under 1.20 in EUR/CHF and left the euro without the central bank bid it enjoyed up to now.
What are the next levels for a pair that is already trading at levels last seen at the beginning of the previous decade? 1.1373 was the low line seen in November 2003. There isn’t much between this line and the very round number of 1.10.
Here is the chart. The pair is tumbling down quite quickly.