January 15th will probably be remembered as an important in the history of forex trading. Moves of more than 10% are not that common in currency trading, to say the least.
Here is a recap of the events of the day that the Swiss National Bank removed the floor:
- EUR/USD < 1.17 as SNB ends cap – huge drama in markets – The initial breaking news. The initial thing I saw was a fall in the value of the euro. I was not aware of the franc, which I got used to ignore after too much stability.
- What does the SNB know about ECB QE? Such a move just one week before the expected euro-printing decision. This seemed interesting, and then I found a nice clue in the statement.
- SNB move in ECB context – Reactions To SNB Move – JP Morgan, Deutsche Bank, SEB – Three banks were quick to respond and had very interesting observations on the move, that is related to the ECB.
- SNB also breaks the brokers – MT4 providers removing CHF quotes – slowly recovering – Reports began emerging from Forex Live and Forex Magnates about brokers’ reactions, and it still isn’t a pretty picture.
- SNB governor: Cap end was not a panic move but needed to be a surprise – Thomas Jordan meets the press and tries to explain the move. He had some interesting comments.
- 3 hints from the SNB that ECB QE is going to be really big : It seems that Jordan knows quite a lot and he released even more hints. This has big implications for next week
- SNB Action Hints At A Steady EUR/USD Drop From Here – Danske : a great analysis on the implications of the move on euro/dollar.
- EUR/USD falls to the lowest since November 2003 – guide to the next big levels – There is a lot of room on the downside for the world’s most popular pair after it hit such low levels.
- Swiss Shock – A test for forex brokers – When the going gets tough, the tough get going. Here are a few ways to examine the reaction of the brokers in light of this huge event.
- SNBomb – Reactions from 18 forex brokers (And counting) – rolling updates on how brokers are coping with the situation.
- EUR/USD < 1.15 – surrenders to huge pressure and trips stops
- ECB QE could theoretically surpass â‚¬2 trillion according to reported program details – Is this what the SNB was fearing?
This shock removal of the 1.20 will probably see more and more aftershocks in the days to come.