ZURICH: The Swiss franc was steady against the euro on Monday and is seen trading in an ultra-tight range against the single currency ahead of a Swiss National Bank's meeting on Thursday where the SNB is seen reaffirming its commitment to the franc cap.
The franc has clung limpet-like to the euro since the Swiss central bank imposed a cap of 1.20 francs on Sept. 6 after the euro zone crisis pushed the safe haven franc to a series of highs, threatening to push the Swiss economy into recession.
"At their meeting this week the SNB is likely to repeat they are willing to defend the 1.20 level, they will make it clear to the market that they are sticking to their strategy," said Commerzbank forex analyst You-Na Park.
In a Reuters poll, analysts also said the central bank is likely to leave the euro cap unchanged.
That means the franc's level against other currencies will remain subordinate to how the single currency reacts to developments in the euro zone and elsewhere.
"While lifted by solid US labour market a higher USDCHF failed to drag EURCHF materially higher late last week. Caught between solid Swiss fundamentals and the SNB's lower boundary the cross is going nowhere fast," said UBS economist Reto Huenerwadel in a note.
The franc was steady against the euro compared to Friday's New York close, trading 1.2056 francs to the euro by 0741 GMT.
The franc was stable against the dollar at 0.9195 francs to the dollar.
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