The Swiss franc continued to flirt with recent intervention levels against the euro on Tuesday. The SNB has kept a lid on franc appreciation with its threatened intervention, but franc weakness has also been contained and the currency remains firmly within the confines of the tight 1.508/1.52 range, which has held since mid-October.
"There are currently two opposing forces trapping the cross in a tight trading range," said UBS economist Reto Huenerwadel in a research note. One hand there is the SNB, which is not willing to accept a franc strengthening in light of the current Swiss economic environment, he said.
The dollar has come under renewed selling pressure this week as it became clear interest rates are likely to remain near zero for the next several months, but ticked higher against the franc early on Tuesday after declining sharply Monday.