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Swiss Franc rate is traded upward at the Forex currency market today – Franc is in demand again as a “safe harbour” amid investors’ aversion to risk.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is moving along the signal line, not giving a clear signal. Stochastic oscillator goes down today, approaching oversold zone and giving a pair sell signal.

Forex recommendations: in case of breakdown at the local lows traders’ targets will be the levels of 0.9170 and 0.9140/30.

Index of investor economic expectations ZEW in Switzerland in March will be released in the middle of the week; on Thursday the range of a three-month interest rate LOBOR will become known and also a meeting of Swiss National Bank will be held. 

Statistics of last week demonstrated that level of CPI in Switzerland increased by 0.4% m/m (+0.5% y/y) in February against the forecast of growth by 0.3% m/m. Thus, inflation in Switzerland has been increasing slightly so far, which on one hand, indicates economic recovery in the country, and on the other hand, does not give rise to discussions of the interest rate revision.

Level of retail sales in Switzerland declined by 2.6% y/y in January against the fall by 0.8% in December; however external background still remains the main driver of the Franc’s movement, as well as possible withdrawal of the players from risks. It is the factor of trade balance (index rose to the level of 1.96 billion euro in January against the growth to 1.26 billion euro earlier) that helps the CHF to be considered a stable currency, since the country does not require external borrowings.

According to the data released on Tuesday, unemployment rate in Switzerland reduced to 3.6% m/m in February against the previous rate of 3.8% m/m. In general it is a positive indicator for Swiss economy, which indicates that economic system of the country is being recovering steadily, despite high rate of the national currency.

In general, amid total global instability, the Franc’s status of a protective currency enables to test new historical highs 

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