The Swiss franc appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the CHF 1.0580 level and was capped around the CHF 1.0690 level. The February UBS consumption indicator will be released tomorrow. The Swiss KOF Research Institute last week upgraded its 2010 and 2011 economic growth forecasts for the Swiss economy today to 1.7% and 2.2%, respectively. Consumer price inflation is expected to be around 0.9% and 1.0%, respectively - also an upgrade from previous forecasts. Swiss President Leuthard last week said the franc is at a quite crucial level and said it is up to the Swiss National Bank to decide whether to intervene. Swiss National Bank Vice Chairman Jordan reiterated last week that the central bank will work to prevent excessive franc appreciation. Swiss National Bank President Hildebrand last week reported the central bank will decisively act against excessive franc strength, noting the central bank can intervene to a very large extent. U.S. dollar offers are cited around the CHF 1.1180 level. The euro moved higher vis-à-vis the Swiss franc as the single currency tested offers around the CHF 1.4355 level while the British pound moved higher vis-à-vis the Swiss franc and tested offers around the CHF 1.5955 level.
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