The recent news about the Swiss government lowering interest rates to devalue the franc has me concerned because I was about to exchange a bunch of USD for francs.
I am very new to currency trading, so I don’t understand a lot of the lingo here. Please bear with me.
I was thinking of putting some of my USD into Swiss Francs in order to diversify from cash and gold. This is a short term account; I will be putting the money into a new piece of property within the next year.
Do you guys think this devaluation will have an effect? If so, how soon does stuff like this impact the currency, and what long term effects will it have?
I’m wondering whether I should do this soon or wait to see if the exchange rate gets better first.
The real truth is that it’s anyone’s guess.
While the devalution had a short-term effect there last week it was almost wiped out the next day. I’d look more to the state of the global economy than efforts by the SNB to stem the tide of franc strength. Things are particularly volatile right now so it is anybody’s guess really. If we get a large sustained market correction I’d expect USD to strengthen (just look at 2008 for how this would play out). Though if QE3 is announced and implemented this could lead to further USD weakness against CHF.
And look what happened! Nothing at all unusual! been there, seen it, done it.
I think he was referring more to the short to medium term than the open today. G7 comments about preventing excessive moves will have spooked those who wanted to pile into CHF hence 200 pip bounce up - 200 pips isn’t unusual? You’ve become immune to the recent forex volatility! 
