The Swiss franc drifted lower against the euro in thin pre-Christmas trading on Tuesday after a Chinese vice premier's remarks supporting EU efforts to calm global markets led some traders to close short euro positions. The franc fell 0.3 percent against the euro compared to the New York close, trading at 1.2695 per euro at 0759 GMT.
The franc was 0.2 percent higher against the dollar at 0.9628 per dollar. Despite the decline the Swissie remained within a hair's breadth of its high against the euro of 1.2636 Swiss francs marked on trading platform EBS on Monday, its strongest since the euro's launch.
"Volumes aren't very large, this is typical pre-Christmas trading, liquidity is less and less and so any large orders are going to move the market," said one trader. "If the euro-dollar pops up we may see the euro rise some against the Swiss franc as well. Support will now be in the 1.2620/1.2630 (Swiss francs to the euro) range, and resistance at 1.2730/1.2780," the trader said. The franc was stronger against the dollar, tracking the euro higher, and remains well above parity, where it has traded for most of the last quarter.