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• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

CHF: Correction started for Swiss Franc, however signals are ambiguous

At the Forex currency market Swiss Franc rate started to decline on Monday, however taking into account that trading volumes are still low, it is too early to speak about trend reversal. Rollback of the Franc is regarded as a technical correction of the pair USD/CHF.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and began to descend, confirming a previous sell signal for the pair. Stochastic Oscillator remains in the oversold zone not giving a clear signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9380 the pair will go to 0.9400 and 0.9440. If the level of 0.9330 is exceeded, traders’ targets will become the level of 0.9300.

It became known today that index of business activity in industry of Switzerland declined to 59.6 points in December against the forecast of 61 points and the previous value of 61.8 points.

According to the data released at the end of December, KOF indicator in Switzerland fell to the level of 2.10 in December against its previous value of 2.13; however it still remains at a high level, confirming the belief that country’s economy continues to recover.

The boost in the Eurozone, in Germany in particular helps to normalize the levels of exports in Switzerland, however the world’s economists think that country‘s economy can slow down in 2011, largely due to the strong CHF. We would remind that Franc broke a new historical record in pairing with the USD in the last days of December 20120.

According to KOF estimates (Swiss institute of research on economic cycles) Swiss Franc will retain the status of a protective asset and a refuge as long as the period of tension will be maintained in Europe.

KOF has also revised its forecast for GDP growth upward in 2011; is it projected that Swiss economy will increase by 1.9% in 2011 against the previous forecast of 1.8%. In 1012 national economy is expected to rise by 2%.

Interest rate in Switzerland (Libor) is currently in the target level of 0-0.75%; the next meeting of the Swiss National Bank is scheduled for 17 March. Subsequent meeting of 2011 will be held on 16 June, 15 September, 15 December.