The Swiss Franc Forex Storm | EURCHF, USDCHF, ... Currencies Tsunami

The Swiss Franc Forex Storm | EURCHF, USDCHF, ... Currencies Tsunami

The recent decision of the Swiss National Bank (SNB) about cancellation of hard peg regime of the franc to the Euro led to a considerable increase in price of the Swiss currency. After this message, the rate of EUR to the Swiss Franc in fact fell to its lowest rate, which was recorded in 2003.

At a certain point the pair reached the level of 0.57 - and it let those traders, who kept the bearish tendency of the price change, take advantage of these fortunate circumstances and hit the jackpot. The central bank not only lowered the rate for deposits up to 0.75%, but also reduced the target scale of the three-month Libor rate from -1.25% to -0.25%

, - comments one of the leading analysts of GAINSY Forex company.

Nevertheless by the end of the day (at 18:00 GMT) the national currency of Switzerland fixed its positions to the Euro at 16%, and to the US dollar - 14%. After that the index of SMI Swiss Stock Exchange closed at -8.7%.

We would like to remind that in the beginning of September, 2011 the Central Bank of Switzerland "artificially" limited the growth of the franc to the Euro by 1.20, in other words, the franc could not cost more than 0.83 Euro. This decision was made due to the fact that the rise in price of the Swiss franc pushed on national exporters, as well as threatened the stability of the Swiss economy. Franc is deservedly considered as the "safe currency", which always can attract additional investments during crisis times.

As a result of such unexpected "financial tsunami" many customers of the leading brokerage firms have suffered huge losses that exceeded their own capital. And consequently the losses of their customers became the losses of those firms, this forced the largest financial organizations represented by the brokerage firms to declare themselves as insolvent.

In a news review of the Forex-media leader – Forex Magnates conducted a detailed analysis of the situation, and published the entire rating of both the affected firms and those ones whose capitals let them withstand the pressure of the abrupt price changes of the Swiss national currency. For more details, please check the link below:
http://forexmagnates.com/covered-brokers-forgive-negative-balance-following-chf-crisis

Due to the professional work of risk management team and the sizes of the company's assets, GAINSY company has managed to show exceptional stability of operations on the Forex market and properly face the threat of the “financial explosion” wave and at the same time let each customer earn. That is why we can confidently say that after such a "testing of strength" GAINSY remains the most reliable and professional Forex brokerage firm.

Keep your funds safe! Trust Professionals! Choose stability with GAINSY Forex Broker!

 

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