The removal of the lower bound on the EUR/CHF exchange rate in January 2015 provides a unique setting to study the implications of a large and sudden appreciationin an otherwise stable macroeconomic environment. Using transaction-level data on non-durable goods purchases by Swiss consumers, we measure the response of border and consumer retail prices to the CHF appreciation and how household expenditures responded to these price changes. Consumer prices of imported goods and of competing Swiss-produced goods fell by more in product categories with larger reductions in borderprices and a lower share of CHF-invoiced border prices. These price changes resulted insubstantial expenditure switching between imported and Swiss-produced goods. Whilethe frequency of import retail price reductions rose in the aftermath of the appreciation,the average size of these price reductions fell (and more so in product categories with largerborder price declines and a lower share of CHF-invoiced border prices), contributing to low pass-through into import prices. In a separate sub-project, we also study the allocative role of currency of invoicing on exports and find similar dynamics. We furthermore show that exports in larger sectors are less sensitive to exchange rate fluctuations than rather small sectors and that thos sectors, that are less sensitive, have grown over time in Switzerland.