The Swiss unemployment rate hit its highest level in nearly five years during July.

The Swiss National Bank has made it clear that it will continue to fight appreciation in the face of clear deflationary pressures.

A report by the SNB showed foreign currency holdings rose 46% in the second-quarter to its highest level in at least 12-years as the central bank attempts to stem the appreciation in the franc.

As the economic docket continues to reinforce a weakening outlook for growth and inflation, market participants are likely to raise speculation for another SNB intervention as the central bank pledges to stem the risks for deflation.

The Swiss franc finished the week almost exactly unchanged against the US dollar, but its steady decline against the Euro increases the risks of Swiss National Bank currency market intervention.

The SNB will look to keep demand for Swiss products growing by continuing to keep its exchange rate lower versus its man trading partners Europe and the U.S.

The Swiss franc looks vulnerable in the week ahead as June's headline inflation data threatens to embolden the central bank’s efforts to depreciate the currency.

The Japanese yen may continue to outperform in the week ahead as risky assets reverse lower, boosting demand for the safety-linked currency.

The British pound experienced broad weakness on Friday after spending most of the week as the strongest of the majors, as risk appetite continues to be one of the sole forces behind GBP/USD strength. In this coming week, though, fundamental forces could start to play a bigger role.

How is it that the currency of an economy that is expected to suffer the worst economic contraction in the industrialized world, has ongoing troubles with credit and financial conditions, and is now seeing political turmoil has been able to produce such an impressive rally across the board?