The Swiss franc continued its drop against majors, after taking a breather yesterday, on expectations the SNB will adopt all measures to halt the franc's rally.

Yesterday, the SNB said it would raise sight deposits to 200 billion francs from 120 billion francs, repurchase outstanding SNB bills and adopt foreign exchange swaps, and it revealed that may take further measures if needed.

Today, there are talks that the bank is selling franc in forward markets, rather than spot markets, to reduce its appeal more.

Swiss Finance Minister Eveline Widmer-Schlumpf said any decision regarding a target for pegging to the euro is up to the central bank, not ruling out the possibility of seeing one of the two aforesaid options.

In the euro area, amid the absence of important fundamentals today, concerns continued after the rejection of expanding the European fund beyond the 440 billion euros.

Concerning the EUR/CHF pair, it rose slightly on the daily basis to trade around 1.1436, where it recorded a high of 1.1515 a low of 1.1219.

Moreover, the yen showed advance against majors as investors resorted to the currency as a refuge amid the undergoing worries despite the talks from the Japanese Finance Minister that the BoJ may intervene strongly to curb the yen's appreciation.

The dollar, on the other hand, also benefited from haven demand where it advanced against a basket of major currencies to 74.04 compared with the day's opening level of 73.79, according to the dollar index.

Later in the day, the U.S. will release important inflation and jobless claims data that are expected to have an impact on the market as a more than expected rise in inflation may thwart talks about introducing a third round of stimulus, while jobless claims data is predicted to signal that the labor market is still weak.

Concerning the USD/JPY pair, it continued the sideway moves seen over the past six sessions with slight downside tendency to trade at 76.57 after touching a high of 76.70 and a low of 76.51.

The trading range for today is among key support at 75.25 and key resistance now at 79.55.

Moving to the British pound, it dropped after the release of lackluster data that worsened the outlook for the British economy further.

Retail sales with auto fuel retreated to 0.2% compared with the revised 0.8% in June, while the annual reading came flat compared with the prior 0.4% rise.

Meanwhile, the pair is trading around 1.6490 after touching a high of 1.6553 and a low of 1.6472, whereas the trading range for today is among key support at 1.6225 and key resistance at 1.6745.