The CHF moves on Friday are a worrying new development for the Japanese authorities and the Yen. With the Swiss seemingly desperate to escape the jaws of an ultra strong currency squeezing the life out of its economy, we are witnessing the introduction of new measures to correct the situation. Negative interest rates got things moving but the rumours of a cash fee on clearing accounts saw USD/CHF finally take out the stops above 0.8000 and rocket to 0.8150 before pulling back modestly.
The Yen meanwhile continues to strengthen seemingly as the last safe haven currency available. As we know the Japanese do a lot of talking but actions to date have been some what laughable. Whether they are prepared to go down the Swiss path must now be put on the discussion table before it gets too late.
