At the Forex currency market Swiss Franc rate has broke n a historical record and reached a new highs in pairing with the USD on Friday setting it at the level of 0.9343, despite the low trading volumes. Thus, Franc is concluding this year at the peak of growth.
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 remains in the oversold zone and is not giving a clear signal.
Forex recommendations: off the market.
Feasible event scenario at Forex: in case of breakdown at the level of 0.9340 the pair will go to a new high of 0.9300. If the level of 0.9385 is broken down, buyers of the USD/CHF will have targets of 0.9400 and 0.9430
Market is Switzerland is closed due to the upcoming New Year.
At the meeting of the regulator which was held earlier it was decided to maintain three -month rate Libor in the previous target range of 0-0.75, as expected by the market. Index was revised in March 2009 last time when it was reduced by 0.25%.
According to the data released yesterday, 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.
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%.