Amid the absence of data from the Swiss economy, the pair's movements will probably depend on the US data due today. As of 12:30 GMT, the US will release building permits and housing starts for the month of March, where expectations refer to improvement in both indicators to 1.1% from 8.2% drop and 8.6% rise from 22.5% fall respectively.
The dollar showed some strength on Monday to pare some of the losses incurred the previous week when the dollar hit a new fresh low versus the Swiss franc.
The Fed left interest rate at its low level in April in range between 0.0% and 0.25% and spent $600 billion on bond purchase program that will end in June, causing the dollar to depreciate.
On the other hand, the improvement in the Swiss economy along with the strong safe-haven demand on the Swiss franc amid the escalating European debt crisis, Japanese nuclear leaks and unrest in the Middle East and North Africa gave further strength of the franc.
With the refusal of Greece to restructure debt andthe rejection of the True Finns party, which took 19% in Parliamentary votes, of conferring European bailouts to debt-laden nations, the Swiss franc may gain additional power, where the interest rate hike by the ECB in April increases the likelihood that the SNB may raise borrowing cost in June to protect exporters.
Originally posted here
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