€Chf spike

[GMP]

Watching my MT screen, the €Chf has just spiked 200 pips in a matter of minutes. Is this a data error or is it some reaction to some news release I'm missing? The Swiss interest rate decision was as expected... what's going on??

I see the £ has shot up the same way, so I'm missing something - someone enlighten my ignorant soul!

 

[Martinghoul]

Dude, which planet you living on? Have you seen the SNB headlines and the decision?

*SNB SAYS WORLD ECONOMY HAS SHOWN MARKED, SIMULTANEOUS SLOWDOWN
*SNB SAYS MAGNITUDE OF ECONOMIC CONTRACTION IN 4Q UNEXPECTED
*SNB WANTS TO LIMIT RISK OF DEFLATION
*SNB SAYS TO BUY CURRENCIES TO AVOID FRANC APPRECIATION
*SWISS FRANC EXTENDS LOSSES AGAINST DOLLAR AS SNB CUTS KEY RATE
*SNB SAYS TRYING TO CURB FRANC'S APPRECIATION AGAINST EURO
*SWISS FRANC EXTENDS DROP VERSUS EURO AS SNB CUTS RATE TO 0.25%
*SNB SEES INFLATION AT 0% IN 2010
*SNB PREVIOUSLY FORECAST SWISS INFLATION TO AVERAGE 0.9% IN 2009
*SNB SEES 2009 INFLATION AT -0.5%
*SNB SAYS SWISS ECONOMY MAY SHRINK 2.5%-3% IN 2009
*SNB SAYS TO BUY CURRENCIES TO AVOID FRANC APPRECIATION
*SNB PLANS TO BUY WISS FRANC BONDS
*SNB CUTS 3-MONTH LIBOR TARGET RANGE TO 0%-0.75%
*SNB CUTS INTEREST RATE TARGET RANGE BY 0.25 PERCENTAGE POINT

 

[GMP]

Thanks, my soul is enlightened - I need a better news source rather than just checking the interest figure (too much maths, not enough attention!).
Still a bloody huge move though!

Dude, which planet you living on? Have you seen the SNB headlines and the decision?

*SNB SAYS WORLD ECONOMY HAS SHOWN MARKED, SIMULTANEOUS SLOWDOWN
*SNB SAYS MAGNITUDE OF ECONOMIC CONTRACTION IN 4Q UNEXPECTED
*SNB WANTS TO LIMIT RISK OF DEFLATION
*SNB SAYS TO BUY CURRENCIES TO AVOID FRANC APPRECIATION
*SWISS FRANC EXTENDS LOSSES AGAINST DOLLAR AS SNB CUTS KEY RATE
*SNB SAYS TRYING TO CURB FRANC'S APPRECIATION AGAINST EURO
*SWISS FRANC EXTENDS DROP VERSUS EURO AS SNB CUTS RATE TO 0.25%
*SNB SEES INFLATION AT 0% IN 2010
*SNB PREVIOUSLY FORECAST SWISS INFLATION TO AVERAGE 0.9% IN 2009
*SNB SEES 2009 INFLATION AT -0.5%
*SNB SAYS SWISS ECONOMY MAY SHRINK 2.5%-3% IN 2009
*SNB SAYS TO BUY CURRENCIES TO AVOID FRANC APPRECIATION
*SNB PLANS TO BUY WISS FRANC BONDS
*SNB CUTS 3-MONTH LIBOR TARGET RANGE TO 0%-0.75%
*SNB CUTS INTEREST RATE TARGET RANGE BY 0.25 PERCENTAGE POINT

 

[Martinghoul]

Well, they have just said that they will pull out all the stops. Everything but the kitchen sink thrown at the problem. People didn't expect them to be this aggressive, but that was wrong, given that they have ALWAYS been this way. So I went long USDCHF right before the announcement

 

[GMP]

No substitute for experience, eh? I definitely need to pay more attention to fundamentals - I would've sold the EURCHF there if the announcement wasn't due, and that would've been VERY painful!

Well, they have just said that they will pull out all the stops. Everything but the kitchen sink thrown at the problem. People didn't expect them to be this aggressive, but that was wrong, given that they have ALWAYS been this way. So I went long USDCHF right before the announcement