With the U.S. economy showing signs of recovery, Swiss traders were selling U.S. Dollars to capture higher yields elsewhere. Deflation is still a major concern for the Swiss National Bank.
The U.S. Dollar closed lower versus the Swiss Franc. Once again increased appetite for risk sent Swiss investors out of the Dollar seeking better returns elsewhere.
A threat of an intervention by the Swiss National Bank triggered a mild rally in the USD CHF late in the week, but the lack of follow-through to the downside negated the signal. The threat wasn’t even confirmed but keep in mind that the SNB will do all it can to prevent deflation and that does include an intervention among other weapons at its disposal.