Not sure why the Swiss franc has suddenly pooped the bed but traders are blaming black-box type funds for the sudden liquidation of CHF longs.
My own opinion is that we are seeing a macro-shift from risk aversion as it looks as though the US economy is experiencing a mid-cycle soft patch rather than tumbling back into recession. If that turns out to be the case than we will not likely see any further quantitative ease from the Fed.
As noted yesterday, US equities and bond yields broke months-long downtrends, spurring my macro call. The CHF slid only strengthens that notion, to my mind.
Stops in EUR/CHF are perched above the 1.3050 level, traders relay. 1.3150/65 is monumental resistance in that cross.
