chf peg finally breaks

Discussion in 'Forex' started by oldtime, Jan 16, 2013.

  1. boy they fooled me, I didn't think it would last this long

    oh well, good for us

    another pair to trade
  2. JB3


    The peg didn't break at all.
  3. how so? from a traders point of view, it looks like it did

    but almost everybody knows more about it than me
  4. JB3


    The peg was only to the down side of EURCHF @ 1.20. The peg held. The Swiss doesn't care if the EURCHF goes higher, they welcome it because then they would not need to defend their peg.
  5. oh, ok, I got you, so at 1.20 it kicks back in
  6. contra


    I was under the impression it was never a "peg", but a floor.
  7. It was never peg or floor. the Swiss National Bank announced in early Sept 2012 that it was prepared to buy as many euros as necessary to stop the franc strengthening beyond 1.20. The reaction was traders created a psychological fear and the 1.20 far.
  8. not only euros, but anything else out there for sale

    funny thing is, they had a guy with a microphone that just interviewed common people on the street

    and they all said the number one problem was the strong franc

    one guy was complaining he had to charge 8 euros just to sell a beer
  9. contra


    so basically you're saying it's a floor. It wasn't just traders psych that held it, because they in fact bought a shitload of Euro... then diversified.
  10. no, it was us traders that did all the heavy lifting

    snb just stood there, like a stern father

    and they will whoop your butt, if you dare cross them
    #10     Jan 17, 2013