Not that things were going great for macro hedge funds already, but the added blow Thursday from Swiss National Bank has sent shockwaves stunning shorts in CHF. The SNB announced that it will be discontinuing its efforts to keep the Swiss franc artificially low against the euro. The news sent the so-called safe haven currency soaring as much as 30%.
Franc minimal exchange rate lifted
Before this sudden change in policy, the Swiss financial authority had kept the EURCHF exchange rate at 1.20 since September 2011. Today the euro was trading as low as 0.85 franc/euro, before climbing back to just above 1 franc/euro. The central bank also slashed interest rate on deposits...
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