A number of market commenters in these days have been saying that the decision of the Swiss National Bank to un-peg the Swiss Franc by its artificially constrained change rate with the EUR, USD, etc. was a Black Swan.
Maybe some people does not know what is the meaning of the “Black Swan” term in finance, as popularized by Nassim Taleb through its homonymous book.
A Black Swan is an event that comes out as a major surprise, something that no-one would expect to happen.
Can anyone that has been involved with financial markets for the last 6 years honestly say that the un-pegging of the Swiss Franc was a completely unexpected event?
A country of 8 millions people, with a 650 Billion USD GDP (smaller than Turkey) where their national central bank has become one of the largest FX traders in the world, with more than 500 billions under management, a giant hedge fund betting against collapsing currencies like the euro, without the help of Retracement Levels?
Seriously.
