EURCHF Falls 2,296 Pips In 1 Day On Swiss National Bank Surprise Move

EURCHF has created history in the currency markets by falling 2,296 pips in just 1 day. This happened when the Swiss National Bank suddenly announced that it was removing the 1.20 Swiss franc to 1 euro peg. Market reacted with shock. CHF appreciated almost 41%. EURCHF fell 2,296 pips in just 24 hours.

EURCHF Daily

Many forex traders suffered heavy losses. A number of global forex brokers have gone belly up that includes Alpari UK. Well, whenever there are gigantic moves in any market, you can expect that a lot of people just lost a ton of money. There are other big ramifications in eastern European countries, where many people have mortgages denominated in francs. Those mortgages just got a LOT more expensive.

This shocker comes at a time when financial markets are experiencing a level of volatility not seen in a while. The collapse in commodities has already caused lots of pain. Now there’s another out-of-the-blue move to add stress to the system.

Some analysts are calling Swiss National Bank decision as amateurish. Others are saying this decision was inevitable and market participants had an idea that it was coming. European Central Bank is scheduling its own Quantitative Easing Program from next week that is going to flood the market with cheap euros. So it would have be practically impossible for the Swiss National Bank to defend the Swiss franc euro peg.

This is another strong warning to currency traders to always use a stop loss when trading. Those traders who were not trading with a stop loss lost heavily as the priced spiked down in seconds and there was not enought time to close the trades. Most of the traders who had no stop loss saw their accounts get blown in seconds.