And so, less than a day after EURCHF blew threw 1.12 for the first time since the SNB abandoned the floor…
…the pair is the talk of the FX world again, as an early surge pushed the common currency to 1.13484 against the franc in Asian trading:
EUR/CHF rises as much as 0.7% to 1.1348, gaining for the 4th consecutive day
— Heisenberg Report (@heisenbergrpt) July 28, 2017
If you aren’t up to speed on this, you should really review the following posts, because this is undoubtedly notable:
- Swiss Franc Tumbles: Euro Hits 1.12 For First Time Since Floor Was Abandoned
- As Currency War Beckons, Here Is One Trader’s Dollar Mea Culpa
The sharp move shown in the second chart above has raised some eyebrows and is being attributed to Japanese banks “inadvertently” triggering large stops.
“Very poor liquidity in the spot extended the move [as] EURCHF is taking a while to fill the gap due to an absence of natural sellers,” traders told Bloomberg, adding that “the move above overnight high was due to a combination of short covering and momentum buying and is being made more difficult as spreads blow out in both options and spot.”
So far, EURCHF is up some 2.8% on the week – that would be the biggest weekly gain since January 2015:
