As the majority of currencies, the Swiss franc rose against the US dollar and the Japanese yen but fell versus the euro during the current trading session. It was rather surprising behavior, considering that news from Europe was not good.
The Swiss franc declined in the weeks following the huge jump after the Swiss National Bank decided to scrap the cap on the currency. Recently, the Swissie was trading sideways in a tight range. It may mean that the currency has found its new value area.
The SNB decision to end the effective peg of the franc to the euro was very surprising and was not welcomed by market participants. Most traders do not like to experience sudden shocks that can obliterate any trading strategy completely. Yet now, there are rumors that the SNB intervenes in the markets to keep the currency weak. The actions of the Swiss central bank look puzzling indeed.
USD/CHF dropped from 0.9257 to 0.9228 as of 19:07 GMT today. EUR/CHF advanced from 1.0503 to 1.0597. CHF/JPY rose from 126.54 to 127.29.
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