Saxo Bank's Head of FX Strategy John Hardy brings us up to date with the fall-out from the Swiss shock move to remove the cap on CHF yesterday. In his overview John says: "For now, it is still very much a case of keeping helmets on until more liquidity comes into the market and we see more of a sense of equilibrium established. Many suggest that “fair value” for EURCHF is well north of parity, perhaps even 1.10, so it would seem that parity is a starting point, and the Swiss National Bank is likely providing some liquidity around the parity level if we look at the price action overnight, when the slip in EURCHF to below 0.9800 was quickly reversed." 

John also looks at how faith in central banking has been undermined and looks ahead to next week's expected QE introduction by the ECB.