The Swiss franc was trading at its weakest level in four weeks against the euro and was still within reach of 2-1/2-month lows against the dollar with an improved economic outlook lifting the greenback across the board. The franc could find guidance in Swiss producer and import price data for November, which analysts consider the highlight of this week's Swiss economic data.
"We are looking for an increase in both the producer and the import prices over the month on the back of higher energy prices," UBS economist Reto Huenerwadel said in his daily note. The franc was trading at 1.0299 per dollar, within sight of the low of 1.036 hit on Friday, its weakest level since October, from a technical point of view, the cross-faced resistance at 1.0368 and again at 1.0453.
"Following almost a year of an ever lower dollar/Swiss, investors do not seem to be willing to add on their dollar/Swiss short positions at current levels," Huenerwadel said. Euro/Swiss was in the meantime gaining ground on the back of fresh dollar strength. Against the euro, the franc was trading at 1.5120 after hitting a 4-week low of 1.5140 earlier in the day.
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