The pound resumed gains versus the euro amid speculation the European Central Bank will announce a plan to buy the region’s government bonds this week, a policy measure that may debase the 19-nation shared currency.
Crude oil fell after Iraq said it’s producing a record amount of crude. Swiss stocks rebounded from a one-year low and the franc weakened, while Chinese shares tumbled the most in six years as regulators cracked down on margin lending.
The Euro/Swiss franc was the epicenter of the turmoil after the Swiss National Bank surprisingly pulled the rug from under the bulls’ feet on Thursday and let the dormant currency pair plummet to below parity from 1.20.
After resolutely holding up through the early part of this week, the bottom has dropped out of the euro over the last 48 hours. With the primary euro “buyer of last resort”, the Swiss National Bank, throwing in the towel, euro bulls have capitulated.