The Swiss franc traded nearly unchanged against the euro on Wednesday, flirting with levels that could prompt the Swiss National Bank to start selling the Swissie again as part of its efforts to cap the franc's rise. The SNB has repeatedly stepped in to limit the franc's appreciation against the euro as it seeks to combat deflationary pressures in Switzerland and protect its export sector.
"There is not much movement at the moment. It seems that the franc is quite stable against the euro. Appreciation of the franc is not possible as the SNB would intervene and depreciation is not a topic in the market," Ronald Plasser of Bankhaus Schelhammer & Schattera said.
"The important thing for the euro/Swiss franc is SNB intervention and the intervention level is close to 1.46. The SNB at the moment wants to avoid a level of 1.46," he said. The franc was trading 0.04 percent lower against the euro at 1.4685 per euro. It was trading 0.1 higher against the dollar at 1.0651 per dollar adding to strong gains in the previous session.