The Swiss currency, together with the Japanese yen, has again proved resilient over the past few days and this indicates that selling pressure is liable to be contained. The National Bank policy actions will continue to be watched very closely with the potential for aggressive rhetoric against franc strength at Thursday's meeting. In this context, the franc continues to offer poor value at current levels against major currencies.

The dollar was again unable to escape from resistance near the 1.04 level against the franc and there were renewed losses to below 1.0350 later in New York. The Euro did manage a firmer tone against the Swiss currency with gains to 1.5150, although the franc was still able to resist substantial selling pressure.

The latest industrial production data recorded a 2.7% rise for the second quarter after a 13.1% decline previously which did not have a substantial market impact while business confidence rose strongly. The main market focus will still be on Thursday’s National Bank policy meeting and the Euro pushed towards 1.52 on Thursday.