EUR/CHF watch: what are you watching?
EUR/CHF lives in the shadow of the 2015 shock: the SNB's floor is gone, but the memory shapes how the pair is traded (guide).
Post:
- the levels you're tracking
- how SNB policy is shaping the pair
- how the euro side is behaving
The safe-haven guide covers the franc's dual role.
Background: The Swiss franc shock of 15 January 2015: when the SNB scrapped the 1.20 floor
The Swiss National Bank abandoned its minimum exchange rate of CHF 1.20 per euro without warning, and the franc jumped within minutes. What happened, why, and what it taught traders about risk.
Why did the SNB remove the EUR/CHF floor in 2015?
The SNB said the monetary policies of the major currency areas had diverged significantly and the euro had weakened against the dollar, so enforcing the CHF 1.20 minimum exchange rate was no longer justified.
When was the Swiss franc floor introduced?
The SNB introduced the minimum exchange rate of CHF 1.20 per euro in September 2011 and discontinued it on 15 January 2015.
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