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CHF: Swiss Franc gave way to Dollar

At the Forex currency market Swiss Franc rate hassubsided on Monday under the pressure from the USD.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is moving along the signal line, not forming a clear signal. Stochastic Oscillator is giving a pair buy signal, being in the neutral zone.

Forex recommendations: if buyers’ current sentiment will be maintained and in case of breakdown at the level of 0.9550 investors’ targets will become the levels of 0.9510 and 0.9440.

In general, the situation in Swiss economy remains almost unchanged today.

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.

In addition, the regulator stressed once again that strong Franc is a hard burden for the local economy which is especially evident in some sectors. However, in general, the macro-economic background demonstrates a good atmosphere in the country.

Earlier representatives of the Swiss National Bank raised the issue of CHF. Finance Minister of the country stated that there are no signs of speculation in the market which can shift the Franc; while economy in the country grows and there are no signs of crisis. It was also stressed that an issue of expensive Franc will become a subject of discussion in the next couple of weeks.

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