Financial markets have not yet subsided from the shock that followed the publication the Swiss central bank on Thursday, there is already new date, which could once again shook the financial markets. On Thursday, 22nd January is scheduled a meeting of Governors of European Central banks, according to which once again could lead to rapid changes in the exchange rate EUR/CHF.
Fresh capital worth 500 billion euros
At that meeting will be decided at what extend and when will the European Central bank start the program of buying bonds and with that increasing the inflow of fresh capital to the financial markets of eurozone. The main aims of the program are to increase liquidity in the financial system and increase economic activity. There are roomers about this program for several months now and until recently the governor of German central bank was strongly against it, because he believes that the program will not bring the desired results. But recently he receded and because of this many analytics believe that the probability of starting this program is very high. The expected extend is about 500 billion euros.
Analysts expect that on Thursday can happen significant shifts of euro exchange rate relative to other exchange rates, regardless of final decision. If the European central bank starts the program, euro would be further weaken in relation to other highly liquid currencies, especially agains US Dollar and Swiss Franc. If there will be no program, can euro temporarily gain on worth. Right after the news can EUR/USD increases or decreases fro 2-3%, the way,off course, depends of the decision. EUR/CHF exchange rate could react even more, given the fact that it has not yet been stabilised after the first shock last week.