This is big.
The Swiss National Bank has scrapped its ceiling of SFr1.20 to the euro, three and a half years after introducing it.
This has caused the Swiss franc to skyrocket on foreign exchange markets. At one point it was up more than 40% against the euro.
The decision is likely linked to next week’s European Central Bank governing council meeting, when the eurozone’s monetary policy makers announce a quantitative easing effort, which would result in the Swiss National Bank taking on even more euros as reserves to keep the euro strong.
In other words, the SNB is no People's Bank of China type patsy, where the PBOC has taken on massive amounts of dollar reserves to prop up the dollar.
Will the PBOC learn anything from SNB? If so, this will not be good for the US dollar.
Meanwhile, gold is soaring: