The Swiss franc opened easier on Monday as investors seeking more risk exposure moved out of the safe-haven currency and the yen advanced on a newspaper report that Japan had stopped intervening to weaken the currency.
The dollar firmed to 1.2872/76 francs from 1.2839/42 francs late on Friday in Europe, while the euro moved up to 1.5566/68 francs from 1.5531/36.
In its daily markets bulletin, UBS said prospects for a European Central Bank rate cut were supporting the dollar against the euro, which should also prevent a dollar sell-off against the franc.
The euro should keep easing against the franc in the months ahead as a Swiss economic recovery solidifies, it said. It saw euro support at 1.5540 francs and resistance at 1.5640 and 1.5740.
Euro short-covering has kept the single currency firm of late, UBS said, "but we maintain our one-month target at 1.55, and advise to sell rallies towards 1.5640 with a stop-loss above 1.5740. Also we are looking for the cross to trade lower in three months from now, targeting 1.5400."
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