Did a Fat Finger Tag the Swiss Franc?
A sudden and brief move lower in the Swiss franc has traders blaming human error.
All eyes were on the Swiss franc earlier today when it suddenly slumped against the euro, only to quickly regain the lost ground. Investors watching for any signs of Swiss National Bank intervention were initially suspicious, but it soon became clear that the Swiss were not the euro buyers, and things settled down. Strategists like Amelia Bourdeau, a director in the foreign exchange group at Westpac, said indications pointed to a "fat finger" - someone entering the wrong data on a trade.
Still, the Swissie has other factors weighing on it, says Mark McCormick, a currency strategist with Brown Brothers Harriman. "Today's big move is a risk-on day," he told me, between encouraging U.S. economic data, respectable debt auctions in Europe, and potentially good news coming from the Greek debt talks.
Fat finger or no fat finger, it seems traders just aren't that into you, Swiss franc.
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