Markets remain shaken-up by SNB

 

Risk aversion soars and markets remain spooked by yesterday’s announcement from the Swiss National Bank that it has called an end to the coupling of its Swiss franc to the euro.

The surprise move caused a global flight to safety, as traders sought refuge from the increase in volatility throughout markets worldwide. Shares in Asia slipped overnight, European stocks are edging lower and US futures point towards a negative open.

An increase in safe haven demand saw assets such as gold and the Japanese yen gain a boost. Gold soared to its highest in four months and looks set to record its best performing week in nearly ten months, while the Japanese yen touched four-week highs versus the US dollar.

Millions will likely have been lost by investors as the SNB’s move saw all other currencies tumble versus the Swiss franc, even already forcing one dealer to shut down due to massive losses.

The euro tanked over 40 per cent and the US dollar hit an 11-year low, while most other currencies lost over 15 per cent.

It seems the SNB’s decision was driven by the imminent start of the 500 billion euro quantitative easing plan that the is European Central Bank is overviewing.