EUR/USD Slumps to 1.16 after SNB Decision

The euro hovered above an 11-year trough early on Friday as investors wagered the Swiss move to abandon its currency cap meant it was almost certain the European Central Bank would launch large-scale bond buying next week.

The euro suffered its biggest one-day drop against the Swiss franc in history after the Swiss National Bank (SNB) stunned markets by suddenly abandoning its long-held pledge to keep the franc above 1.20 per euro.

After falling 30 percent in a matter of minutes, the euro has since clawed back to 0.9828 Swiss francs, but that still left it down 19 percent.

CNBC

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