Ouch

Who'd have thought the Swiss National Bank would ever be the most hated entity in financial markets, but that's where it finds itself.

It's abrupt decision to abandon its currency peg to the Euro has wiped out at least 3 retail FX brokers and left FX traders and Swiss multinationals floundering.

The immediate effect should be deflation and possibly recession in Switzerland, but also a loss of a significant buyer of eurozone government bonds. The SNB was mopping up huge chunks of debt as a buy-product of it's policy. If the ECB steps into the breach with QE then all will be fine in Eurozone govvies. If not, then some of the weaker members may find their bonds drifting lower in price as a significant source of demand has been removed.

All eyes on the ECB next week then.