From MoneyBeat:
The Swiss move to scrap the floor that kept its currency’s strength in check against the euro caught most people by complete surprise. Among them: Goldman Sachs GS -0.95%.
One of its key trading ideas for 2015 has been turned on its head by today’s moves, and followers will find themselves nursing bruises. The trade in question? To go short the Swiss franc against the Swedish krona, in the hope that the former would fall and the latter rise.
Hours after the SNB announcement, which saw the euro and European currencies plummeting against the Swiss currency, Goldman Sachs announced its decision to close the trade. And how much would you have lost if you’d followed the trade? About 16.5%, Goldman analysts said in a note to clients.
“Today’s decision to abandon the floor is certainly a surprise to us....MORE
