Swiss Franc Advances On Risk Aversion

The Swiss franc drifted higher against the other major currencies in European deals on Friday, as European stocks fell on concerns that Greece is moving closer to debt default, as its talks with EU creditors showed no apparent progress.

Speaking on the sidelines of the IMF spring meetings, the International Monetary Fund Chief Christine Lagarde ruled out giving the country any leeway on 1 billion euros of debt repayments due by early May.

Speaking in Brussels, a European Commission spokesman said that the EU leaders are not satisfied with the level of progress over Greece talks, as it has not yet produced the full list of reforms demanded by them last month.

In economic front, Swiss retail sales declined for a second straight month in February, marking its biggest annual fall on record, data from the Federal Statistical Office showed.

Retail sales dropped an adjusted 2.7 percent year-on-year following a 0.5 percent drop in January. In December, sales grew 1.8 percent from a year ago. The latest fall was the biggest since the series began in 2003.

The franc was lower against the euro, yen and the pound in the previous session. Meanwhile, it held steady against the greenback.

The franc hit a 2-week high of 0.9493 against the greenback and a 10-day high of 124.93 against the yen, off early lows of 0.9583 and 124.11, respectively. If the franc extends rise, it may find resistance around 0.92 against the greenback and 126.00 versus the yen.

The franc reversed from early lows of 1.0326 against the euro and 1.4340 against the pound, and rebounded to 1.0275 and 1.4274, respectively. The next possible resistance for the franc may be eyed around 1.00 against the euro and 1.40 against the pound.

Looking ahead, U.S. consumer prices and leading indicators for March and Reuters/University of Michigan's preliminary consumer sentiment index for April are due in the New York session.