EUR/CHF Spike Remains Mystery
Tweet
Share
E-mail
The exchange rate between the EUR/CHF, which has been traded in an extremely tight range since April at just over 1.200, spiked from 66 pips from 1.2010 then collapsed lower by 50 pips.
There are rumors flying around that official at the Swiss National Bank, which has been supporting the price of the Swiss Franc by defending the 1.200 level, placed a fat finger trade.
Other rumors - and this is the one that is really interesting- says that the foreigners with deposits in CHF will be taxed. This rumor is unconfirmed.
Dow Jones is reporting that the sudden spike is the result of lack of liquidity. "Liquidity is completely one-sided in [the euro/Swiss franc exchange rate] and the exit door is almost non-existent," according to a trader.
Traders can quickly enter and exit the Swiss Franc with ETF CurrencyShares Swiss Franc Trust (NYSE: FXF) and for the Euro CurrencyShares Euro Trust (NYSE: FXE).
There are rumors flying around that official at the Swiss National Bank, which has been supporting the price of the Swiss Franc by defending the 1.200 level, placed a fat finger trade.
Other rumors - and this is the one that is really interesting- says that the foreigners with deposits in CHF will be taxed. This rumor is unconfirmed.
Dow Jones is reporting that the sudden spike is the result of lack of liquidity. "Liquidity is completely one-sided in [the euro/Swiss franc exchange rate] and the exit door is almost non-existent," according to a trader.
Traders can quickly enter and exit the Swiss Franc with ETF CurrencyShares Swiss Franc Trust (NYSE: FXF) and for the Euro CurrencyShares Euro Trust (NYSE: FXE).
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
- AGBA Group Holding (AGBA) selling off into close, down over 17%
- Tesla (TSLA) erases gains, drops to $140 again
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
