The Swiss National Bank will remain an extremely important factor and there remains a very strong probability that the bank will intervene to block franc gains. Swiss currency gains when risk appetite deteriorates, will certainly be lessened by the fact that there would be renewed fears over the Swiss financial sector. Overall, dollar buying on dips still looks the best strategy and the US currency still offers medium-term value in the 1.06 region against the Swiss franc.
The dollar again found support close to 1.0650 against the franc on Tuesday and pushed to a high near 1.08 in New York before consolidating near 1.0750 with the Euro slightly stronger.
There was no evidence of intervention by the National Bank, but markets will be nervous over the threat on any further approach to the 1.06 region against the US currency.
Although domestic data will be monitored, the inter-play of global risk appetite and National Bank policies will tend to remain dominant currency influences for now. There were comments on Thursday from the central bank that it would continue the policy of intervention and the franc dipped to lows around 1.0830 against the dollar.