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At the Forex currency market Swiss Franc rate has reached new historic highs – in pairing with the USD this time, and it is at the level of 0.8889 at the moment.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and it goes down, giving a pair sell signal. Stochastic oscillator continues to grow in the neutral zone, giving a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.8900 and retesting of the level of 0.8889 the pair will go to 0.8850. If downward breakdown does not take place, the pair will consolidate close to the levels, achieved currently.

Three- month Libor rate remains unchanged, at the level of 0.25%.
It became known last week that index of investors’ economic expectations ZEW increased to 8.8 points in April against the fall by 13.5 points in February. It was a positive sign for Switzerland which confirmed the continuation of the national economy recovery even despite strong Franc. The data of this week demonstrated also that producer price index and prices for import increased by 0.4% y/y in March which agreed with the forecasts.

Real level of retail sales in Switzerland increased by 1.5% m/m in February against the decline by 2.4% m/m in January; level of CPI in Switzerland rose by 0.6% m/m (+1,0% y/y) in March against the forecast of growth by 0.2% m/m. It is an ambiguous factor for Swiss economy as on the one hand the economy strengthens and on the other hand it suffers from significant inflationary pressure.

Representative of Swiss national Bank Mr. Dantin stressed earlier that the Bank is capable to ensure price stability even amid excess liquidity. In addition the politician said that the cost of intervention in the currency market will be determined by the informational pressure.
SNB has already highlighted the problems more than once: following the last meeting, the regulator said that strong currency is a burden for the economy and overprice will trigger slowdown in economic growth – largely due to the deceleration in export volumes. 

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