Swiss franc softer

The Swiss franc ticked lower against the euro and was stable against the dollar on Friday as traders digested a report that the Swiss government is examining a proposal to tax offshore deposits as part of measures to curb Swiss franc strength.
The multi-party seven-member cabinet said it was ready to consider two parliamentary motions requesting that it create the legal framework for such a tax to supplement the central bank's arsenal for fighting currency strength and protect the economy. Parliament would have to vote on any draft law.
UBS economist Reto Huenerwadel dismissed the prospect of negative interest rates, noting that the SNB has already been largely successful in keeping the franc off its highs, adding that negative interest rates have not deterred traders in the past. "The last time negative interest rates have been introduced in Switzerland they did not prevent the CHF from strengthening," Huenerwadel said in a research note.
Traders remain on alert for any indication the SNB could shift the cap, and the central bank's next quarterly policy assessment in mid-December will be closely watched. The franc was softer ahead of economic data due out in the morning, which is expected to show retail sales slipped by 0.9 percent year on year. It fell 0.1 percent against the euro compared to the New York close to trade at 1.2337 francs per euro. The franc was stable against the dollar at 0.915 francs per dollar.