• CHF leads, AUD lags on the day
  • European equities lower; S&P 500 futures down 2.2%
  • US 10-year yields up 18 bps to 3.47%
  • Gold down 0.8% to $1,819.33
  • WTI crude down 1.9% to $113.14
  • Bitcoin down 6.8% to $21,018

The central bank bonanza this week continues with the SNB making a policy pivot to raise interest rates for the first time since 2007.

The Swiss central bank also dropped its long-held view that the franc is 'highly valued' and said that they may even consider selling foreign currencies if the franc weakened. The 180° turn is seeing the franc gain strongly and looks set to post its biggest daily jump since 2015.

USD/CHF fell by 1.5% from 0.9950 to just below 0.9800 currently while EUR/CHF is down 2% from 1.0370 to 1.0170 on the day.

The surprise move by the SNB exacerbated the reversal of the post-FOMC moves with Treasury yields erasing the drop from yesterday while equities slumped hard. 10-year yields are up 18 bps to 3.47% while European indices languished and are down between 2% to 3% at the moment. Risk sentiment was already softer as the session began but the SNB decision kicked things into overdrive with US futures also tumbling down.

Not long after, we had the BOE rate decision and they stuck to a more straightforward 25 bps rate hike. That initially saw the pound fall with cable dropping from 1.2150 to 1.2040 before picking up again to 1.2175 and sitting just below that now.

In broader FX, the dollar is holding its own for the most part as it recoups losses from yesterday. EUR/USD is seen down 0.5% to 1.0390 while commodity currencies are seen lagging amid the more dour risk mood. AUD/USD is down 0.7% to 0.6950 and NZD/USD down 0.5% to 0.6255 at the moment.

USD/JPY was initially more steady around 134.30 but quickly fell to 132.35 as traders appear to be getting jittery with the BOJ in focus tomorrow, after the SNB performed their policy pivot earlier. The pair has come a little to 132.80-00 levels as price action remains rather volatile for the time being.