Forex news from the European morning session 15 January
News:
- EURCHF collapses as SNB gives up on 1.2000
- SNB’s Jordan to hold a press conference at 12.15 GMT
- SNB intervention cited as CHF pairs and euro recover some losses
- Has the SNB just played the ECB’s hand on QE?
- CHF pair carnage – Fat fingers, sheer volume of traffic or both ?
- Expect a long wait over the retail mess in swiss positions
- ECB’s Noyer says the euro depreciation is normal given the Eurozone’s low growth rate
- BOJ to consider extending lending programmes to encourage economic growth
- Fomer BOE MPC member Sentence says UK not in a large disinflationary situation
- BOJ downgrades assessment of 1 out of 9 domestic regions
- BOJ Osaka branch manager says rapid yen drop is hurting sentiment in Kansai region
- In the world outside of Switzerland – quick news round up
- When Mario met Giovanni – The full Die Zeit interview here
- If you think forex markets present a challenge then read this
Data:
- Spanish HICP Dec final mm -0.7% vs -0.6% exp
- Nikkei 225 closes up +1.86% at 17,108.70
- Shanghai Composite Index closes up +3.5% at 3,336.45
It’s all about the SNB today and the market was sprung a real surprise when the central bank removed the EURCHF 1.2000 protection and cut interest rates further into negative territory
Up until that moment the session was ticking along in random fashion but not as busy as we’ve seen this week. Cue the SNB announcement and the carnage began with EURCHF immediately hitting 1.1200 then 1.0500 then 1.00 then 0.9000 all the way to what is generally considered to be the real low around 0.8500 but plenty of fat finger trades being cited for lower posts
CHF pairs all tumbled with USDCHF posting lows around 0.7400, GBP/CHF 1.1700 and CHFJPY surging to 155.00 before some reported SNB intervention provided liquidity and we were heading back higher again in a rush.. Little point me giving you all the subsequent price action ( just take a look at your charts) but we’re now in the midst of the SNB presser. Price spreads were pushed right out understandably but have since narrowed again but caution well and truly advised here.
Elsewhere we saw the knock-on effect with EUR pairs all tumbling sending EURGBP down to 7 year lows of 0.7625 and EURJPY to 135.70 with EURUSD posting 1.1575 from 1.1760
USDCAD has tumbled 1% to 1.1811 on firmer oil prices while AUDUSD has risen back up through 0.8250 to post 0.8295 after a dip to 0.8160 on the CHF buying.
Crazy crazy days and proving once again to be careful what you wish for. Volatility is good but can also wipe out the unprepared/ill disciplined
