CHF/USD Fundamental Outlook at 1500 GMT (EST + 0500)

The Swiss franc appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the CHF 1.0655 level and was capped around the CHF 1.0760 level.  Swiss National Bank Governing Board member Danthine said avoiding inflation is a medium-term challenge.  Data released in Switzerland this week  saw the March unemployment rate decline to 4.2% from 4.4% in February.  Swiss National Bank's 2009 Annual Report was released this week in which the central bank indicated it expects GDP growth around 1% this year, down from the prior forecast of 1.5%.  Swiss National Bank is thought to have intervened again this week by selling the franc but this will remain unconfirmed and is far from certain because while the pair appreciated quickly, it did not appreciate by more than 35 pips.  U.S. dollar offers are cited around the CHF 1.0920 level.  The euro moved higher vis-à-vis the Swiss franc as the single currency tested offers around the CHF 1.4395 level while the British pound moved higher vis-à-vis the Swiss franc and tested offers around the CHF 1.6510 level.