FXstreet.com (Barcelona) - The Swiss Franc has been sold massively against all majors after the SNB decoded to trim interest rates by 0.25 basis points, but mainly by the Quantitative Easing program announced by the Bank.

According to Kathty Lien, Director of Currency Research at GFT, the Bank's program is the main reason behind the CHF slump: EURCHF has ripped higher as the Swiss Franc collapsed following the Swiss National Bank's interest rate announcement. Their decision to cut the Libor target range 25bp to 0.00-0.75 percent was leaked yesterday but the big move in the Franc was driven by the SNB's massive Quantitative Easing program involving currency intervention.

EUR/CHF has soared from 1.4760 to 1.5300 in the hour after the SNB released its decision, reaching its highest level since Dec 19. Kathy Lien affirms that the Bank was after a CHF depreciation in order to protect their export sector: Their announcement today is aimed at accomplishing 2 goals at their expense of their neighbours which is protect their export sector and prevent the economy from falling into a deflation trap. The SNB has been very frustrated with the appreciation in the Swiss Franc against the euro and in response, they are intervening directly in the currency market to avoid a further appreciation. In other words, a massive buyer of EUR/CHF has entered the market. Both EUR/CHF and USD/CHF have soared more than 3 percent to a 2 month high following the interest rate decision.