Swiss National Bank Shocks The Currency Market Bankrupts Many Forex Brokers

Swiss National Bank to unpeg Swiss franc from euro was so sudden that it shocked the currency market. USDCHF fell 1867 pips in just 1 day. EURCHF made history by falling 2967 pips in just 1 day. Many traders who were trading CHF pairs lost heavily as a sudden and huge gap appeared that bypassed their stop losses. There are a number of big global forex brokers that have suffered huge losses. Alpari UK has announced bankruptcy.

Yahoo Finance’s Jeff Macke, Rick Newman, senior columnist Michael Santoli and editor-in-chief Aaron Task got together to discuss the Swiss shock. Newman points to the shock move by the Swiss National Bank to prove that 2015 will be driven by things we can’t anticipate. “That euro has fallen straight out of bed with this change,” Macke says. “And in a normal world currencies move glacially.”

The bigger problem, Newman says, is that we are nowhere near a situation where markets are driving markets. “It’s still policy makers driving markets and that’s going to continue. That’s volatile by definition,” he says. Watch the video below that explains why this move was unprecedented.

This video also does a good analysis!

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