The Swiss National Bank (SNB) released its first quarter report, while traders were keen on getting more information about the Black Thursday, as most of the brokers were hit markedly and are struggling to overcome this experience even now.
The SNB’s cap removal on EUR/CHF at 1.20 was an unexpected move, which caused many traders and brokers heavy losses. Alpari UK, Liquid Markets and FXCM sufferred mostly during this quarter.
Nevertheless, the largest loser became the sole SNB, reporting exchange rate loss related to EUR/CHF cap removal reaching CHF41.05B. Overall, it lost CHF30B during the entire first quarter (mostly related to loss on foreign currency positions at CHF29.3B, while gold holdings reported CHF1B loss).
But the questions remains what the first quarter report would look like if the cap removal did not happen. The SNB became concerned of European Central Bank’s quantitative easing program, motivating it to suffer rather lower losses as full-scale intervention after rapid euro decline during first month of this year. From this point of view seems the SNB’s move reasonable.
Specific data can be found in an official release of SNB for the Q1 2015:
http://www.snb.ch/en/mmr/reference/pre_20150430/source/pre_20150430.en.pdf
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