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At the Forex currency market Swiss Franc rate goes up on Friday, smoothing over previous sales. Franc’s investors relaxed after neutral meeting of SNB where the Bank clarified its current position of non-interference.

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 tends to leave overbought zone and started to shape a sell signal.

Forex recommendations: in case of break down at the level of 0.9370, the pair USD/CHF will go to 0.9360 and 0.9330. If upward breakdown does not take place, the pair will consolidate at the current levels.

So, the outcome of the meeting of Swiss National Bank, which has been expected so eagerly by players, was neutral. Three-month Libor rate was left in the range of 0-0.25%, closer to zero; the Bank did not change pegging level of Franc to Euro, maintaining the actual level of 1.20.

In the follow up comments the head of SNB Mr. Hildebrand stressed that the regulator will continue to preserve the target rate of CHF, using for this purchases of foreign currency in unlimited quantities and additional package of measures if situation requires. SNB is ready to maintain high level of liquidity, as inflation growth is not expected. In general, economy of the country depends a lot on the European crisis.

Apparently SNB adopted the attitude of an onlooker, keeping in place existing management tools, deciding fairly that they can intervene at any time.

Earlier, Switzerland had 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.

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.

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