The franc halted its rally against majors after the SNB Vice President Thomas Jordan said that there are talks about pegging the franc as the bank face mounting difficulties to halt the franc's appreciation which poses a threat to the development of the economy in Switzerland and has further increased the downside risks to price stability, according to the SNB.

It is clear that the SNB is ready for using any methods to halt the franc's rally as policy makers introduced other measures yesterday that did not succeeded in lowering demand on the franc.

In the euro area, the French President Nicolas Sarkozy gave policy makers a one week time to announce new measures that curb the rising debt that is predicted to affect the country's growth prospects.

Concerning the EUR/CHF pair, it rebounded to trade around 1.0500 after three days of decline, where it recorded a high of 1.0550 a low of 1.0253.

On the other hand, haven demand focused more on the yen after the drop of the franc as the undergoing turmoil and grim outlook for global economies kept the yen as favorite safe haven.

Tensions and fears are still persisting in markets where investors are worried that global econmeis, led by the United States, may head to another recession or financial crisis, triggering demand on safe haven assets.

Gold fell today after touching a new fresh high of $1814.87 an ounce.

Concerning the USD/JPY pair, it continued its plunge for the fifth consecutive session, falling below last week's intervention by the BoE, to trade at 76.60 after touching a high of 77.22 and a low of 76.29.

The trading range for today is among key support at 74.25 and key resistance now at 79.55.

Moving to the British pound, it advanced against majors except the yen. Versus the dollar, the pair rose to 1.6153 ahead of Osborne speech to the parliament on the economy amid worries that intensified yesterday as the BoE indicated in their quarterly inflation report that growth outlook is weaker and inflation will decline below target in the medium term.

So far, the pair has recorded a low of 1.6109 while the highest level was depicted at 1.6206, whereas the trading range for today is among key support at 1.5780 and key resistance at 1.6470.