LONDON Feb 27 Switzerland's franc could rise to
levels not seen against the euro since just after it scrapped a
ceiling on the currency in 2015 if Marine Le Pen gains further
in French presidential election polling, analysts at Swiss
financial group UBS said on Monday.
While underlining a base case for the franc to retreat from
current levels around 1.0650 per euro to 1.08 francs
in three months and 1.12 francs in six months, Thomas Flury and
Alessandro Bee said it was possible the Swiss National Bank
would be forced to allow the currency to rise sharply.
"Current euro-franc and euro-dollar volatility indicates
that the market is concerned about the euro-franc exchange rate
and whether the SNB has the conviction to stabilize it near
current levels," they wrote in a note to clients dated Feb. 27.
"The situation could become even more complicated over the
coming months should the chances of Mme Marine Le Pen winning
the presidential race rise further. There is a risk that the SNB
may be forced to allow the euro to drop towards 1.03."
(Reporting by Patrick Graham, editing by Nigel Stephenson)