Retail Sales data was released out of Switzerland today and showed that retail sales declined much more than expected in February. The Swiss real retail sales data, released by the Federal Statistical Office, decreased by 3.8 percent in February from the February 2008 level. This follows January’s annual retail sales data that had gained by 1.2 percent from the previous January. February’s data surpassed market forecasts which had expected Swiss sales to decline by just 0.2 percent on an annual basis.
Swiss franc falls in currency market trading today.
The Swiss franc declined in currency trading today against other major currencies as the Swiss National Bank reiterated the intention to intervene in the foreign exchange 
market to limit Swiss franc gains in an effort to prevent deflation. The franc has fallen against the euro, British pound, US dollar and the Japanese yen in trading today.
SNB President Jean-Pierre Roth, speaking in a Shareholders meeting, stated that the SNB would continue to sell Swiss francs after implementing the Central Bank’s first currency market intervention in fifteen years this March.
The SNB announced March 12th, during an interest rate reduction, that the SNB would intervene in the currency markets and specifically, “to prevent any further appreciation of the Swiss franc against the euro”.
President Roth said that the move was not a competitive devaluation but “a key operational tool which, under the given circumstances, helps us perform our mandate with regard to price stability, in other words to preserve our economy from both inflation and deflation.”
Roth also stated, that “In view of the risk of deflation, decisive action was called for, and we will continue to pursue this strategy for as long as the risk remains.”
The euro gained against the franc today as the EUR/CHF advanced from its 1.5116 opening rate at 00:00GMT to trading near 1.5197 at 4:36pm EST according to currency data from Oanda. The euro jumped over 100 pips to an intraday high of 1.5241 after the speech.
The pound also advanced today as the GBP/CHF opened at 1.7152 and has ascended to trading at 1.7247 later today. The USD/CHF pair has climbed from its 1.1522 opening exchange rate to trading at 1.1658 and made an intraday high of 1.1689 before retreating. The franc has declined against the Japanese yen today as the CHF/JPY fell from its 86.23 opening to trading later at 85.14 yen per franc.
EUR/CHF Chart – The euro gaining against the Swiss franc today on the 30-minute chart to trading above the 1.5200 level.
