why spot just jumped - The EUR/CHF peg got abandoned

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bull_bear

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Silver Stacker
Breaking: EUR/CHF Exchange Rates Go Haywire as Platforms Freeze after SNB Abandons Floor
Trading platforms at a number of brokerages go haywire, with prices on the EUR/CHF ranging between 1.02 and 1.17, for the time being there is no definitive information on where the Swiss franc is trading to the euro.
 
Prior to the Euro peg the Franc was considered another safehaven currency so it'll interesting to see where it goes from here
 
It's the balloons.
SpotLogo_hires.jpg
 
Swiss franc just jumped 30% in value after it was "unpegged" from the Euro. Bad day for Swiss gold investors :rolleyes:
 
I would have to do a bit more reading, but I think the Swiss probably got sick of spending money pegging the currency. Been pegged since Sept 2011 I think - every time someone buys CHF, the Swiss would need to buy EUR to try and maintain equilibrium.
 
Now I get why Pirocco buys that much silver.

Euros are just going to be worthless!
 
It was plenty cheeky of the Swiss national bank not to signal and prepare for this. Seems like it was a bit if a surprise party. It cost a lot of people a hell of a lot of money no doubt.
 
Great example of how dynamic currencies can be.

Swiss gold investors got screwed...those holding cash, win.

Russians holding cash get screwed...those holding gold, win.

Greeks holding cash get screwed...those holding gold, win.

Aussies holding cash on a falling exchange rate???
 
Rats jumping from a sinking ship.

It was, undoubtedly, getting too expensive to maintain the peg. Moreover, they'll have been hoarding euros to do it - euros that are falling in value (despite temporary euro zone deflation).
 
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