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At the Forex currency market Swiss Franc rate continues to move away from historical highs on Wednesday.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF; however it started upward reversal, forming a pair buy signal. Stochastic Oscillator continues to go up today, coming into the overbought zone and giving a pair buy signal. 

Forex recommendations: in case of breakdown at the level of 0.9375 buyers’ targets will become the levels of 0.9430 and 0.9475/80.
Market will await publications on Swiss consumer price index for the last month today.

According to the data released on Tuesday, unemployment rate in Switzerland reduced to 3.6% m/m in February against the previous rate of 3.8% m/m.

In general it is a positive indicator for Swiss economy, which indicates that economic system of the country is being recovering steadily, despite high rate of the national currency.

Level of retail sales in Switzerland declined by 2.6% y/y in January against the fall by 0.8% in December; however external background still remains the main driver of the Franc’s movement, as well as possible withdrawal of the players from risks. 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.

Statistics released earlier showed that showed 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.

Last week statistics showed that the level of retail sales in Switzerland declined by 2.6% y/y in January against the fall by 0.8% in December. Probably, cold winter had its impact on the indicator. If the reason for the decline n sales is seasonality, then we will be able to witness recovery in the indicator in spring.
 
 

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