ZURICH: The Swiss franc was steady against the dollar on Monday, close to a one-month high hit during the Friday session as the franc tracked the euro higher on hopes European finance leaders would sign off on an aid tranche enabling Greece to stay afloat. The franc has traded in a tight range against the euro since September last year, when the Swiss National Bank capped the soaring Swissie at 1.20 to the euro after a sharp run up in the currency had threatened to tip the Swiss economy into recession. "In Europe, the focus will be on Monday with a potential for a resolution on the Greek funding issue. This will likely trigger a gain in EUR despite softer economic data in the Eurozone this week," said Credit Agricole analysts in a note. In the US, discussions on the fiscal cliff, which would trigger automatic budget cuts, appear to be taking a positive turn as policymakers show some willingness to compromise, but are unlikely to be resolved by year end, Credit Agricole said. The franc was little changed against the dollar compared to Friday's New York close, trading at 0.9283 francs per euro by 0755 GMT. The franc was steady against the euro at 1.2037 francs per euro. Alpari analyst Craig Erlam said in a note the dollar-euro pair had met resistance at around 1.30 last week, a level he saw as significant. "A break above here would suggest that we'll see the euro move significantly higher," Erlam said in a note. "This could depend on whether we see the Greek deal signed off today, until then we should see the pair edge lower, finding support around 1.2875, followed by 1.28, the 200 day simple moving average."

Source