Following the unexpected announcement of a rate cut by the Swiss National Bank, the Swiss franc experienced a sharp decline. The SNB reduced rates from the previous 1.75% to 1.50%, contrary to widespread expectations of maintaining rates. In response, the franc plummeted. EUR/CHF surged from around 0.9680 to 0.97829, with a notable increase in euro buying and franc selling. The Swiss National Bank became the first central bank among advanced economies to implement a rate cut.
Today, once again shifting to selling CHF. Although there was selling of JPY after the BOJ announcement, rumors of future rate hikes may prompt some buying back, hence the move towards selling CHF/JPY from here.
