It was one of the worst days we have seen in a few weeks for the euro as the Swiss National Bank shocked markets on Thursday by scrapping the 1.20 per euro exchange rate floor it imposed in September 2011, when just two days ago they said this was not going to happen, particularly in the short term. This created more uncertainty for the euro and, with the problems still remaining in Greece and the possibility of Eurozone quantitative easing, this could really be the perfect storm for the currency. The euro saw its lowest figure against the US dollar since November 2003, down 1.4% for the day – another colossal fall for the Euro. The euro has moved almost ten cents against the US dollar in one month, leading to worrying times for Eurozone importers.
This morning we have Consumer Price Index (CPI) data from the Eurozone – this could be a positive figure having been forecast at 0.4%, which would be an improvement from last month’s figure of 0%. This could be a short term fix for the euro following yesterday’s disastrous day.