The Swiss National Bank announced it would no longer maintain a currency cap of 0.8 Swiss francs to the euro, allowing the franc to surge over 40% in value. This caused major losses for those trading franc options but profits for those with calls on the franc. The SNB is now reconsidering its monetary policy and intervening in currency markets to prevent further strengthening of the franc against a basket of currencies, not just the euro. JPMorgan reportedly made $250-300 million profiting from their trades in response to the SNB's surprise decision.

1. TRADING THE SWISS
FRANC
By www.ForexConspiracyReport.com

2. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
A lot of people lost money trading the
Swiss franc when the Swiss national
bank announced that they were no
longer selling francs for Euros to
maintain a currency cap of 0.8 francs
to the Euro.

3. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Anyone who was trading options and
had calls on the franc with Euros did
exceptionally well when the franc
soared forty percent in minutes.

4. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
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Before We Continue…

5. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Now the Swiss are rethinking their
monetary intervention strategy
according to Reuters.

6. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Switzerland’s franc again dominated
trade on major currency markets on
Thursday

7. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Falling as much as two percent
against the euro and dollar amid
renewed speculation of intervention
by the Swiss National Bank.

8. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
The franc sank to 1.0430 francs per
euro in morning trade in Europe

9. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
by far its weakest since the SNB
triggered the most violent move in a
major currency in four decades by
dumping its cap on the franc two
weeks ago.

10. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
But as interesting for most players
was the speculation that the SNB was
also intervening in favor of the dollar

11. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
A shift which may allow it to battle the
franc’s broad strength at less overall
cost.

12. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
It turns out that a lot of folks in
Switzerland were very unhappy when
their central bank took the cap off the
Euro with consulting anyone else.

13. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
The prices of Swiss exports
immediately became very pricey in
world markets and Swiss labor unions
complained about the risk of layoffs if
companies are forced to cut back on
production.

14. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Interestingly the franc has settled into
a trading range close to one to one
with the Euro.

15. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Interestingly the franc has settled into
a trading range close to one to one
with the Euro.

16. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
And Switzerland appears to be selling
francs again but using a broader
approach.

17. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
How does this affect anyone trading
the Swiss franc?

18. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Who Made a Profit?

19. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Not everyone got hurt trading the
Swiss franc when the cap went off.

20. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
JPMorgan made money trading
the Swiss franc to the tune of $300
million!

21. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
JPMorgan Chase & Co.’s foreign-
exchange traders reaped a gain of as
much as $300 million after the Swiss
central bank roiled markets by
abolishing its cap on the franc,
according to two people with
knowledge of the matter.

22. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
The bank netted $250 million to $300
million on the day of the Swiss
National Bank’s surprise decision to
scrap the franc ceiling of 1.20 against
the euro

23. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Said the people, who asked not to be
identified because they weren’t
authorized to speak publicly.

24. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
A JPMorgan spokesman declined to
comment.

25. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Not everyone believed that the Swiss
would always buy Euros and some
were at their terminals when the news
hit and were able to place profitable
trades.

26. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
This simply reaffirms the old Woody
Allen saying that 90% of success in
life is just showing up!

27. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
What Comes Next?

28. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Giving up supporting the Euro was
simply admitted that the policy was
going to be too costly as the EU starts
its quantitative easing program and
drives down the value of the Euro.

29. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Nevertheless, Switzerland is still a
small economy with an attractive
currency.

30. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Thus there will always be upward
pressure on the franc.

31. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Anyone trading the Swiss franc can
expect continued the Swiss to
continue to intervene in the FX
market but against a broader basket
of currencies.

32. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
The International Business
Times reports on this situation.

33. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
The Swiss National Bank has
revealed that it is prepared to
intervene in the foreign exchange
market after it stopped capping the
Swiss franc’s value against the euro
on 15 January.

34. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Speaking to domestic press, the
SNB’s vice chairman also defended
the central bank’s move to abolish the
three-year-old euro cap

35. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
As it would have cost 100m Swiss
francs (£73m, €97m, $110m) to
maintain.

36. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
“Giving up the cap means a tightening
of monetary policy,” said Jean-Pierre
Danthine in an interview with Swiss
national daily TagesAnzeiger.

37. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
“We accept this, but only up to a point.
We are fundamentally prepared to
intervene in the foreign exchange
market.”

38. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Thus anyone trading the Swiss franc
against the Euro will not expect to see
direct CHF to EUR intervention.

39. http://www.forexconspiracyreport.com/trading-the-swiss-
franc/
Rather trading this pair will have to do
with actions of the EU that decreased
the Euro’s value across the board and
actions of the Swiss that drop the
value of the franc against all major
currencies.