Swissie Backs Off After Huge Rally, Retains Most of Gains

The Swiss franc fell today, declining for the second consecutive session, as the market digests last week’s shocking decision of the Swiss National Bank to drop the cap on the currency. The currency is still far above the levels at which it was trading before the decision.
The SNB made a huge surprise for traders last week, dropping its cap of 1.20 francs per euro. Nobody saw this coming as even on the day before the announcement central bank’s officials were promising to maintain the ceiling. Needless to say, the news rocked the Forex market, and the franc is still seeking its “fair” value in the new environment.
USD/CHF rose from 0.8609 to 0.8712 as of 14:45 GMT today. EUR/CHF advanced from 0.9941 to 1.0118.

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