The Swiss franc appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the CHF 0.9645 level and was capped around the CHF 0.9970 level. The pair fell precipitously overnight as short franc carry traders were unwound further and risk aversion grew, leading to a flight to safety. Data released in Switzerland overnight saw January retail sales up 1.3% y/y. KOF kept its 2008 GDP forecast for the Swiss economy unchanged at 2.1% and lifted its 2009 forecast to 2.0%. U.S. dollar offers are cited around the CHF 1.0105 level. The euro and British pound came off vis-à-vis the Swiss franc as the crosses tested bids around the CHF 1.5325 and CHF 1.9420 levels, respectively.