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CHF: Swiss Franc begun to rollback after reaching new historical highs

At the Forex currency market Swiss Franc rate demonstrates slight rollback on Friday after reaching a new historical peak once again.

Forex forecast: MACD indicator is in the negative area for the pair and continues to go down, giving a pair sell signal. Stochastic Oscillator still remains in the oversold zone today; however it tends to come out of it and start forming a pair buy signal. 

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9290 the pair goes to 0.9330 and 0.9360. If the level of 0.9200 is broken down, traders’ targets will be the levels of 0.9175 and 0.9120.

Publication of the index of leading indicators KOF in Switzerland is scheduled for the release today.

It became known yesterday 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 a 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 as a stable currency, since the country does not require external borrowings.

According to the head of the Bank, Philipp Hildebrand, currency intervention carried out by the National Bank of Switzerland last year has reached its objective. Monetary politician believes that Switzerland has achieved price stability and got rid of the signs of inflation. We would remind that SNB had been buying the Euro since March 2009 until the middle of 2010 to limit the growth of Franc. Hildebrand is confident that Switzerland is in more advantageous position now compared with Eurozone, where inflation amounts about 2%. Price stability, according to the monetary politician, does not give rise to complaints. 

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