National Bank causes earthquake in forex markets as it abandons cap on currency,michael kors sale uk<br><br>The Swiss National Bank lobbed a bombshell into the global currency markets as it gave up defending the Swiss franc against investors desperate for a safe haven against the eurozone debt crisis,new balance mujer outlet.<br><br>It ditched its three year old cap of Swfr1.20 against the euro,woolrich outlet milano, imposed to stave off the invasion of cash seeking protection from turbulent markets.<br><br>Within seconds, the"Swissie" soared nearly 30 per cent against the single currency with one investor describing the move as "like detonating a stick of dynamite in a dam".<br><br>The pound also plunged,jordan pas cher, along with all other major currencies.<br><br>Steve Woodcock,woolrich bologna spaccio, head of trading at TradeNext,pjs pas cher femme, said: "It's the biggest move I've seen in a 30 year career as a trader."<br><br>Some analysts speculated that the sudden U turn in Switzerland's previous policy meant the SNB had got wind of an even bigger blast of quantitative easing money printing from the European Central Bank than was expected next week,louboutin pas cher femme.<br><br>Only on Monday,woolrich outlet milano, the SNB's vice chairman, Jean Pierre Danthine, said the cap would remain the cornerstone of Swiss monetary policy.<br><br>But the growing crisis in the eurozone meant the flood of cash kept on coming,canada goose milano, making it evermore difficult to sustain the cap.<br><br>Last month,michael kors handbags, the SNB was forced to take further measures to defend itself by imposing negative interest rates,pandora charms online,, effectively meaning investors had to pay to lodge cash in the country.<br><br>In an effort to soften the impact of removing the currency cap today,sac goyard, the SNB slashed interest rates even further,mbt outlet milano,hogan outlet online Confessions of a drug cartel hitman on the run, by half a percentage point to minus 0.75 per cent.<br><br>The SNB said that linking the Swiss franc to the euro meant the currency had fallen dangerously far against the dollar.<br><br>"In these circumstances the SNB concluded that enforcing and maintaining the minimum exchange rate for the Swiss franc against the euro is no longer justified,woolrich sito ufficiale," it explained.<br><br>Simon Smith,nike air jordan pas cher, chief economist at currency dealer FxPro,hogan outlet serravalle case ,canada goose milano, said: "The Swiss central bank has decided this is a battle it can't win given the ECB is likely to do QE next week or at least in March."<br><br>He added that "pressure had been building" on the currency cap due to the swissie's traditional status as a safe haven,hogan outlet roma.<br><br>"But at this point in time,doudoune canada goose, the SNB has broken a dam wall and the waters have flooded out."<br><br>Foreign exchange expert Gain Capital's research director,piumini peuterey outlet, Kathleen Brooks,babyliss curl secret pas cher, added: "If the SNB is so spooked it is disbanding with a policy that it has held dear since 2011, then the rest of the market may want to reconsider their expectations for next week's ECB meeting."
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