The Swiss currency was unable to
hold gains beyond 1.2750 against the US dollar and retreated back to lows near
1.29 following the US data...

... before a recovery to 1.2860. The Swiss franc also
recovered from lows near 1.55 against the Euro as the Euro faltered and
strengthened back to near 1.2820 against the dollar in early Europe on
Friday.

The lack of aggressive rhetoric from
the ECB will offer some protection to the Swiss franc against the Euro in the
short term. The US data, however, will not increase the global economic risk
premium and this will curtail immediate franc demand against the dollar. The US
currency is still liable to hit selling pressure on significant rallies with an
underlying flow of funds back into the Swiss currency, especially if the US data
is weak.


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