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Trade of the week: Shorting the Swiss franc

The decision by the Swiss central bank to cap the national currency provided huge gains for those who had been brave enough to bet on intervention

Investors seeking shelter from uncertain and volatile markets in the sturdy Swiss franc were hit this week when the Swiss National Bank capped the currency at Sfr1.20 to the euro. But the shock move provided huge gains for those who had been brave enough to bet on intervention.

The franc lost almost 10% of its value against the euro earlier on Tuesday morning when the announcement was made, and fell over 8% against the US dollar.

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