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The Swiss franc firmed slightly against the dollar in early trade on Tuesday, as traders awaited US trade deficit figures, scheduled for release on Wednesday, to decide whether to keep buying into the US currency. The dollar last changed hands at 1.1774/78 francs, compared to 1.1800/04 late on Monday in Europe, succumbing to profit-taking after last week's sharp rally as traders became cautious ahead of US trade figures.
Economists expect the US trade balance to show a deficit of $54.0 billion in November, according to a Reuters poll, just off the record $55.46 billion shortfall recorded in October.
The United State's trade and budget deficits have been among the key factors behind the dollar's three-year decline, and most analysts believe the US currency still has further to fall to correct these imbalances.
The euro last traded at 1.5460/61 francs, up from levels around 1.5458/63 late on Monday.

Copyright Reuters, 2005

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