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CHF: Swiss Franc gave Dollar a chance to regain

At the Forex currency market Swiss Franc rate is retreating slightly on Wednesday after three days of rapid growth. Trades yesterday were vague in the first half of the day; however by the evening the situation turned in favour of the CHF.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and resumed decline, giving a pair sell signal. Stochastic oscillator remains in the oversold zone today and is not giving a clear signal.

Forex recommendations: if bearish sentiment for the pair intensifies and in case of breakdown at the level of 0.9400 traders’ targets will be the levels of 0.9385 and 0.9350.

In general, the situation in Swiss economy where all attention is now focused on the rate of the CHF, still remains almost unchanged.

So, attention to the Swiss Franc has remained steadfast from both regulator and local authorities: expensive Franc has a real detrimental effect on Swiss economy, exerting pressure on the process of its recovery. This has been confirmed by Swiss authorities who reminded that strong Franc complicates correction of the national economy. Swiss authorities also stressed that SNB should influence on the rate of the Franc, working with it directly. This increases the possibility of the regulator’s unilateral intervention in the market, although probability of currency intervention is estimated as low so far. The head of Swiss National Bank Mr. Hildebrand said earlier, that in his opinion, stability of Eurozone is the key factor of economic growth in Switzerland. He also expressed confidence that the region will revert   to quiet times.

Swiss authorities stated this week that country’s economy has faced a complicated situation; however it is not a crisis. Expensive Franc became a catalyst for the complications in the economic conditions. At the same time authorities declared that SNB does not influence in any way on the CHF rate, although it bears full responsibility for the monetary policy and its contents. 

It became known yesterday that according to UBS estimates, consumer confidence index in   Switzerland increased to the level of 1.842 in December against 1.624 in November. This is a positive indicator for the local economy. Therefore, the situation in Swiss economy remains ambiguous.

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