Since last Thursday there have been rumours about the Swiss National Bank getting super-aggressive about stemming the rise in the Franc, and actually pegging it to the euro at some fixed price.
Today the SNB came out and said that it would make some modest move with money market rates to lessen the Franc’s appeal. It’s a far cry from a peg.
The market was obviously disappointed/surprised.
Note the dollar fell sharply against the Franc earlier today.