Top-5 FX market events in 2015
The year 2015 turned to be an eventful year for the financial world. Let’s review the key milestones we should remember.
1. Swiss National Bank
The regulator caused panic on the financial markets by unexpectedly removing the EUR/CHF peg on January 15. As a result, Swiss franc surged by 20% at once. The majority of currency traders was hurt by this decision. Later on the exchange rate of the franc declined, especially against the US Dollar.
2. European Central Bank
On January 22, the ECB announced the beginning of a quantitave easing program that was expected to increase its balance by more than 1 trillion euro. This decision pulled the euro exchange rate to its new lows on 2015.
This country was an important newsmaker in the first half of the year. Left party SIRIZA won the parliamentary election on January 25. On the July 5 referendum the Greek people said ‘no’ to the austerity measures. Prime minister Tsipras used the results of the referendum in negotiations with creditors. As a result, the country obtained a new international credit tranche in August and avoided a default.
On June 12, bubble on the Chinese market started deflating. Shanghai Composite index fell by more than 30% in one month. Other volatile days we rememberd were July 27 and August 24 (“black Monday”). Investments based on loans grew much faster than the economy and the corporate profits. As a result, fears of a “hard landing” of the Chinese economy and yuan devaluation hurt the market badly.
5. The Federal Reserve
In December 2015, the Fed had raised interest rate for the first time since the 2006. As a result, the US economy entered a tightening cycle that is expected to continue next year. This topic will remain highly important for the currency markets in the coming months.