As we wrote about yesterday, one of the biggest moves in currencies has been the Euro rallying against the Swiss Franc.
Back in the crisis days, the euro plunged against the Swiss Franc, as everyone rushed their money into Switzerland, to escape the crumbling Eurozone.
Then the Swiss National Banc — fretting about the strength of its own currency and the potential negative economic ramifications — put a ceiling on Franc strength, and so the Euro didn’t move against the Franc for a long time.
But now that fears are subsiding in Europe, we’re seeing the opposite of the run on Europe, and a run back into Eurozone, as folks repatriate their cash back out of Switzerland.
The Euro had a huge week against the Franc, and it’s continuing today, as this chart from Bloomberg shows.
The Davos conference in Switzerland is about to start. The timing of this move is just perfect timing, as visitors to Switzerland will finally catch a bit of a break.