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15 Jan 2015
EUR/CHF stabilizes above 1.0200
FXStreet (Córdoba) - The euro-franc cross has steadied above 1.0200 over the last minutes after collapsing and hitting lows near 0.8540 on the back of SNB surprise decision to remove the 3 ½-year old EUR/CHF floor set up at 1.2000.
EUR/CHF has moved away from lows after the initial shock reaching a recovery high of 1.0650 before settling at mid-1.02’s area. Rumor has it the SNB itself intervened to help the rebound. At time of writing, the pair is trading at 1.0255, recording a 14.62% loss on the day.
Swiss National Bank President Thomas Jordan added little information during the press conference. He reiterated current circumstances not longer justify enforcing the EUR/CHF floor and said the decision was taken independently from other central banks. Jordan said the decision to remove the franc cap had to be a surprise as it was the adoption, but considered market has overreacted given the franc was already overvalued.
EUR/CHF has moved away from lows after the initial shock reaching a recovery high of 1.0650 before settling at mid-1.02’s area. Rumor has it the SNB itself intervened to help the rebound. At time of writing, the pair is trading at 1.0255, recording a 14.62% loss on the day.
Swiss National Bank President Thomas Jordan added little information during the press conference. He reiterated current circumstances not longer justify enforcing the EUR/CHF floor and said the decision was taken independently from other central banks. Jordan said the decision to remove the franc cap had to be a surprise as it was the adoption, but considered market has overreacted given the franc was already overvalued.