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• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
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• AUD: sales of Australian Dollar do not subside [11/10/2011]
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CHF: Swiss Franc continues to rebound from the highs

Swiss Franc rate continues to move away from the highs at the Forex currency market on Friday amid severe overbought.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and it goes down, confirming a previously formed sell signal for the pair. Stochastic Oscillator is giving a pair buy signal today, coming out of the oversold zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9590 the pair will go to 0.9620 and 0.9650. If the level of 0.9572 is exceeded, the target of decline will become the levels of 0.9540, and then 0.9500.

The situation on Swiss economy has not changed significantly; the market is closed in the country today due to celebrations of Catholic Christmas.
At the meeting last week, Swiss National Bank made a predictable decision to maintain three months rate Libor in the previous target range of 0-0.75. This decision of the Bank was expected by the market. Index was revised in March 2009 last time when it was reduced by 0.25%.

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%.

Earlier, Swiss Finance Minister Mrs Widmer-Schlumpf noted that Swiss National Bank has no plans to abrupt collapse of the Euro in pairing with the USD. Therefore, the politician denied rumours that have appeared due to the publication in Sonntag regarding secret talks of the head of the CHB Hildebrand with the Swiss authorities about the prospects of decline of the Unified European currency to the rate of 0.50 francs.

Worth noting that debates have intensified at the market in regards to how soon the SNB will start currency intervention, because high rate of Swiss Franc seriously obstructs country’s economic recovery.  
 

 

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