The Swiss franc held close to recent highs against the euro on Monday as traders mulled over a mooted central bank intervention on Friday. The Swissie slipped against the dollar after hitting a several month low in the previous session.
"From the chart, it seems there could have been two (Swiss National Bank) interventions on Friday, so levels seem close to the SNB confidence level," said Ronald Plasser of Bankhaus Schelhammer & Schattera. "It looks like they don't want the franc below 1.46 (against the euro). But in the longer run the franc could continue to appreciate, the only thing stopping that at the moment is intervention."
Franc-watchers also focused on producer price data due out, but trading was expected to be lacklustre, with US markets closed for a holiday and investors looking for more details on the unfolding Greek debt crisis. The Chinese central bank's decision to raise reserve requirements for commercial banks also hit risk appetite, boosting the dollar, currently considered the safest of safe havens, and to a lesser extent the Swiss franc.
Trading against the euro was muted on Monday after a more volatile Friday when, after a strong early showing, the franc snapped back towards the 1.47 level on rumours of Swiss National Bank intervention, which were not however confirmed by the SNB.
Many analysts agree the 1.46 mark may be the SNB's new intervention territory in the franc-euro exchange. However, that could shift higher if worries about Greek debt remain unresolved. The franc was largely unchanged against the euro compared to Friday's New York close, trading at 1.4664 per euro. The franc was slightly down against the dollar at 1.0775 francs per dollar after closing at 1.0763 on Friday, when during trading it slipped briefly below 1.08 francs to the dollar for the first time since August 2009.
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