The Swiss franc continued to tick up against the euro on Wednesday ahead of the release of the KOF leading indicator, as investor risk appetite that has pressured the franc in carry trades decreased.
"It is all about risk aversion, which edged higher overnight and this morning helped by higher volatility in the FX/options markets", Calyon analyst Henrik Gullberg said. "This typically underpins the franc."
The franc traded 0.1 percent higher against the euro at 1.6505 per euro, well off the 9-year low at 1.6673 hit shortly after the SNB's decision on June 14 to increase rates by 25 basis points.
Since then, the SNB tightened its money market rates, which analysts took as a sign that the central bank was worried about the franc's weakness, sparking speculation about a more aggressive tightening ahead. The franc was near flat against the dollar at 1.2281 per dollar.
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