The Swiss franc will remain robust, but there is a strong probability that a near-term peak was seen last week

The Swiss franc weakened back to lows beyond 1.61 and 1.0950 against the Euro and dollar respectively on Friday. Risk tolerances improved which lessened immediate demand and the franc was also still technically overbought after the recent strong gains.

The franc moves are likely to remain dominated by degrees of risk aversion and the currency pared losses as Wall Street drifted lower.

National Bank President Roth stated that the recent franc gains were welcome and a natural result of rising risk aversion. The bank’s stance will provide some important underlying currency support.

The franc strengthened back to 1.0930 in early Europe on Monday as Asian equity prices lost ground, although there was not the sense of panic seen during the first half of next week.