Forex news from the European morning session 15 January



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