History was made yet again last night as the Swiss National Bank decided to abandon its policy of pegging its currency, or in other words, ceased and desisted its cap of 1.20 franc per euro.
This was a real doozy for those of us awake and trading in Chicago at 3 a.m. This was not just a U-turn in policy out of the SNB, this was more like a Starsky & Hutch maneuver when they flip their Gran Torino in the other direction doing 80 mph.
This sudden and uncharacteristic move by the typically well-telegraphed and prudent Swiss central bank provides investors with two substantial takeaways.
