By FXEmpire.com
A wild day was seen in the EUR/CHF pair for Thursday. A rumor about some kind of Swiss deposit tax in the banks had the market spike 70 pips or so in the middle of the session, only to fall right back down to where it started. The spike is a perfect reason as to why trading news is a sucker’s game, and can almost always lead to trouble. The fact that the rumor was denied simply puts this pair back where it was, and in the same situation: You cannot sell, but buying isn’t necessarily a good move either. We have a small position that we have been collecting swap at the end of the day with, much like a dividend stock. Beyond that, there isn’t much to do as the Swiss National Bank will certainly defend the 1.20 level.
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Originally posted here
