The Swiss franc weakened vis-à-vis the U.S. dollar today as the greenback tested offers around the CHF 1.0635 level and was supported around the CHF 1.0575 level. Swiss National Bank President Hildebrand reported the central bank will decisively act against excessive franc strength, noting the central bank can intervene to a very large extent. Swiss National Bank yesterday published its quarterly economic report today and noted it will continue to act decisively to prevent an excessive appreciation of the franc. In recent days, many dealers speculated the SNB would be less likely to sell francs for euro given the recent improvement in the U.S. economy and the cross has fallen to fresh multi-month lows as a result. SNB today indicated it expects the Swiss recovery to be moderate and fragile. Data released in Switzerland last week saw Q4 industrial production rise 6.4% q/q and decline 1.1% y/y while the February trade surplus declined to CHF 1.29 billion from CHF 2.42 billion. The euro came off vis-à-vis the Swiss franc as the single currency tested bids around the CHF 1.4325 level while the British pound moved higher vis-à-vis the Swiss franc and tested offers around the CHF 1.5950 level.
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