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Swiss Franc rate continues to grow at the Forex currency market on Tuesday – Franc shot up more than by one figure.

Forex forecast: MACD indicator for the pair USD/CHF is in the positive area, it goes down and is shaping a sell signal. Stochastic Oscillator goes down in the neutral zone, moving and is giving a sell signal.

Forex recommendations: in case of breakdown at the level of 0.9030, the pair USD/CHF will go to 0.9020 ? 0.9000. If downward breakdown does not take place, the pair will remain close to the current levels.

As dealers noted, the pair USD/CHF slid down yesterday following the pair EUR/CHF, which had been actively sold by one of the Swiss Banks and British Clearing Bank.

It is worth noting that SNB gave indications in September that could have been interpreted as follows: regulator’s power to maintain the Franc is fading away. We would remind that according to the rumors that grew louder among investors in the market SNB can review its position on the key levels and peg exchange rate of the pair EUR/CHF to around 1.25.

As per the SNB annual report, in the next 6 month economy of the country will come to a standstill due to the impact of the expensive Franc and sharp decline in foreign demand. Thus, GDP in Switzerland will amount to 1.5%-2.0% this year and main growth will attribute to the results of the first part of the year. SNB noted in the comments that if stringent monetary measures had not been taken the economy would have slipped to a recession. SNB expects that inflation will be at the level of 0.4% in 2011 and at the level of 0.3% next year.

It became known earlier that unemployment rate in Switzerland remained at the level of 2.8% in September as expected. Employment sector is stable so far; however repercussion of the expensive national currency is possible. Index of PMI SVME fell to 48.2 points in September against the level of 51.7 points in August. In addition retail sales in Switzerland fell by 1.9% y/y in August against +1.9% y/y a month earlier.

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