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At the Forex currency market Swiss Franc rate fell to new local lows on Thursday under pressure of expectations that SNB will adopt aggressive measure against the rise of the Franc at the meeting today.

Forex forecast: MACD indicator for the pair USD/CHF is in the positive area and started to go up, giving a buy signal. Stochastic Oscillator remains in the overbought zone and maintains a similar signal.

Forex recommendations: in case of break down at the level of 0.9540, the pair USD/CHF will go to 0.9560 and 0.9580. If upward breakdown does not take place, the pair will consolidate at the current levels.

All attention today will be focused on the meeting of National Bank of Switzerland;  i is possible that the Bank will make   decisions about negative rate for Libor and the rise in the exchange rate of Franc to Euro. Earlier, Swiss government stated that they are prepared to lower interest rate to negative levels in order to use all available means to fight against the rise of Franc. At the same time, politicians noted that the most effective tools are in the hands of SNB.

In advance of the meeting Franc weakens dramatically this week.

Earlier, SECO released economic forecast, according to which economic growth in Switzerland will amount to 0.5% in 2012 against the previous expectations of growth of 0.9%.

As per estimates of Swiss National Bank, GDP in Switzerland will amount to 1.5%-2.0% this year; main growth will be attributed 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.

Earlier, Switzerland has awakened interest of players by block of statistics. Thus, retail sales decreased by 0.2% y/y in October against a decline of 1.4% y/y earlier. GDP rose by 0.2% q/q (+1.3% y/y) in Q3 against the forecast of growth of 0.1% q/q (1.7% y/y). ). The data on quarterly basis was positive, indicating that efforts of the Central Bank to curb the rates of the Franc are effective. Statistics of this week showed that unemployment rate in Switzerland remained at the level of 3.1% in November. In addition, CPI fell by 0.2% m/m in November, while expected growth had been of 0.1%. Inflation is clearly affected by external background.

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