Wise money markets try to figure out next move

Chaos ensued across the markets yesterday following the SNB’s (Swiss National Bank) decision to announce they target minimum exchange rate to the Euro will be 1.20.Wise money markets try to figure out next moveThis led to a huge switch with traders and investors alike scurrying to get funds out of Geneva and into other safe havens.

The US Dollar was the main beneficiary from all of the panic with the Greenback gaining between 1 and 2% across the board.

The announcement by the SNB caught the market by surprise and they are the first central bank to properly stand up for their currency.

Whether they actually had to use any of their own money to weaken the Franc or if it was other investors and banks, we will have to wait and see once traders test that 1.20 level for a reaction.

Sterling suffered yesterday as the rush from the Swiss Francs into the most liquid currencies led to losses against most of its rivals.

The Pound hasn’t recovered today with the release of the Manufacturing and Industrial Production numbers.

Manufacturing came out as expected at 0.1%, but the Industrial number was worse at -0.2%, yet another set of weak figures for the UK economy.

Chancellor George Osborne came out fighting insisting he will continue with plans to cut the UK Government’s annual deficit and rejected calls from Labour’s Ed Balls for another tax on the financial sector.

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