The Swiss currency has again been able to resist significant losses even when risk appetite is stronger and underlying capital flows still appear generally positive. The National Bank will remain an important focus in the short term, especially with the Euro close to the key 1.51 region, and there remains a high risk of intervention to stem any further franc appreciation beyond this Euro support zone.

The dollar remained under pressure against the franc on Tuesday and weakened to a low below the 1.01 level for the first time since July 2008. The US currency was able to secure a tentative recovery in New York, but remained firmly on the defensive. The Euro was again slightly weaker against the Swiss currency will lows close to 1.51 with the franc continuing to find firm underlying support against major currencies.

Markets will remain on high alert for National Bank intervention, especially as the 1.51 region has been important in triggering bank action over the past few months.