Forex Blog
Blog-FX.Com

• 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: Interest in Swiss Franc wanes amid market’s optimism

At the Forex currency market Swiss Franc rate continues to retreat from its historic highs on Tuesday as part of technical correction and due to the pressure caused by the lack of investors’ interest in safe assets

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and continues to go down, confirming a previous sell signal for the pair. Stochastic Oscillator is coming out of the oversold zone and is forming a pair buy signal.

Forex recommendations: taking into account external background and in case of breakdown at the level of 0.9330, the pair will go to 0.9370 and 0.9400.

 The following Swiss statistics was released today:

– Real GDP in QIV: +0.9% q/q (+3.1% y/y) against the forecast of growth by 0.5% q/q (+2.8% y/y)

– PMI SVME rose to 63.5 points in February against the forecast of 60.5 points.

Therefore, Swiss economy is strong and continues to progress along the recovery path.

It became known last week that employment rate in Switzerland declined to the level of 4.085 billion in QIV against expectations of growth to 4.086 billion; however Franc ignored this information. The data released earlier showed that indicator of consumption UBS in Switzerland fell to the level of 1.676 points (-0.15 points) in January amid decreasing sales in retail sector due to the low demand for new cars. However the indicator still remains above the key level of 1.5, which ensures favorable prospects.

In addition, import prices in Switzerland increased by 9.8% y/y in January; export rose by 15.5% y/y.

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.

On Thursday, 3 March, the data on retail sales for January is going to be published.

[More]
Tags:
Tags Cloud: citi group global holding negative barclays day trade time notices intervention accelerates