The Swiss franc rose 20% against the euro on Thursday, after the Swiss Central Bank announced its decision to remove the exchange rate cap against the euro. A massive rally boosting the franc occurred within seconds and liquidity dried up since, obviously, no one was going to buy euros after the announcement. This left investors and big trading firms naked as they couldn’t sell their positions until the franc was already way up. They couldn’t do anything but lose a ton of money.
The franc also appreciated steeply against the US dollar, marking a 3-year high. Despite the strong performance of the dollar during the past few months, it seems like it will have a new competitor.