News How Did Scrapping the Swiss Franc Cap Affect Global Markets?

[StevieTNZ]

http://www.wsj.com/articles/switzerland-scraps-currency-cap-1421320531

Switzerland’s central bank triggered turmoil in the markets Thursday when it unexpectedly scrapped its cap on the Swiss franc’s exchange rate against the euro, a move that unleashed new volatility among bonds and currencies around the world and further underscored growing concerns about global economic prospects.

http://www.bloomberg.com/news/2015-...roker-closes-on-losses-after-swiss-shock.html

Casualties mounted from the Swiss currency shock as a U.S. online brokerage said client debts threatened to push it out of compliance with capital rules and a New Zealand-based dealer went out of business.

A news report about the NZ based dealer going out of business is available - http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11387361

 

[Astronuc]

The Swiss Franc is the sixth most-traded currency on the planet, and it exploded in value this morning by 15 percent.
http://www.marketplace.org/topics/world/swiss-national-bank-gives-ghost

Swiss franc jumps 30 percent after Swiss National Bank dumps euro ceiling
http://www.reuters.com/article/2015/01/15/us-markets-franc-idUSKBN0KO16Y20150115
(Reuters) - Switzerland's franc soared by almost 30 percent in value against the euro on Thursday after the Swiss National Bank abandoned its three-year old cap at 1.20 francs per euro.

Apparently the Swiss government printed about 500 billion francs in 2011- and when the Euro gets in trouble, people buy Swiss francs.

It's nice to be wanted.

 

[Vanadium 50]

People call the CHF the "Euro without Greece".