This Week's Forecasts & Trends E-Letter
Swiss Francís Surge = Chaos In Global Currency Markets
January 20, 2015
Last Thursday, the Swiss National Bank stunned the financial world by decoupling the Swiss franc from the euro. This surprise move sent the franc up almost 40% against the euro in one day, although it didn’t close that high (up 19%). Nevertheless, many currency traders, banks and brokerages were left with devastating losses. I’ll give you the details below.
But first, let’s take a look at the recent US economic data which has been disappointing overall. Following the stronger than expected GDP growth of 5% (annual rate) in the 3Q, the US economy seemed to stumble a bit in the 4Q. We’ll cover the latest reports before shifting our attention to Europe and Switzerland in particular.