ZURICH: The Swiss franc slipped lower against the dollar on Thursday, pulling back from a two-week high against the greenback after five consecutive sessions of gains driven by a stream of weak economic data from the United States.
The franc was steady against the euro ahead of a European Central Bank policy meeting later in the day where the ECB is widely expected to shave 25 basis points off policy interest rates. The franc had hit a nine day high against the single currency earlier in the session.
"The real surprise from the ECB could come from any further hint or announcement of non conventional measures," said Credit Agricole head of forex strategy Mitul Kotecha in a note.
"In turn any such hint could dent the euro limiting its ability to capitalise on a weaker US dollar tone. In any case sellers are likely to emerge on any rally in the euro/dollar to resistance around 1.3220."
However, news that the US Federal Reserve is prepared to increase or reduce the pace of asset purchases, part of its unconventional stimulus package, could keep the brakes on the dollar.
The franc has traded largely in tandem with the euro since the Swiss National Bank imposed a 1.20 per euro cap in September 2011 to prevent the soaring franc from tipping the economy into recession after safe haven buyers had bid it up to record levels.
The franc fell 0.2 percent against the dollar compared to the New York close, trading at 0.9288 francs per dollar at 0637 GMT.
The franc was stable against the euro at 1.2222 per euro.
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