The Swiss had to try something. Intervention has proven too expensive, so why not a surprise rate cut? The SNB loosening their monetary policy this morning (less than 0.25%) caught the market off-guard. Dealers had been focusing on the BoJ to be the first to proactively protect its currency value. What will their actions achieve in the short term, apart from devaluing an excessively expensive currency? Perhaps just provide us with better levels to own a safe heaven currency. Japan may now be prompted to follow the Swiss, and seriously consider easing their own monetary policy. Both safe heaven currencies appeal have ... (full story)