"This is a massive message from SNB to the market : ECB is going to do QE, and it’s going to be big..." notes Goldman Sachs and it appears Gold and Crude Oil are starting to get on that bandwagon.
Gold back above $1255
And WTI break $51...
And in context...
Via Goldman Sachs,
Removing the SNB peg takes out one of the biggest EUR buyers in the market. And of course, VERY notable this is happening 1-week ahead of the ECB, they possibly realised they could not continue to buy unlimited quantities when the ECB might print unlimited quantities.
This is a massive message from SNB to the market : ECB is going to do QE, and it’s going to be big..No way I am keeping buying EUROs here. First Market will have to digest the pain of a 28% move at some point, also the USDCHF is down 15% which will HURT in the current long USD environment