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CHF: Swiss Franc is at the historical highs again

Swiss Franc rate continues to grow steadily at the Forex market on Thursday investors actively buy the currency in search of safe harbor due to the developments in Libya, which enabled the CHF to reach historical highs once more on Thursday.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF; earlier it crossed the signal line from top to bottom and continues to give a pair sell signal. Stochastic Oscillator remains in the oversold zone as before, giving a pair sell signal.

Forex recommendations: if bearish sentiment is maintained for the pair, traders’ targets will become the levels of.9250 and 0.9210.

As it became known today, employment rate in Switzerland declined to the level of 4.085 billion in QIV against expectations of growth to 4.086 billion; however Franc ignored this information.

The data released earlier showed that indicator of consumption UBS in Switzerland fell to the level of 1.676 points (-0.15 points) in January amid decreasing sales in retail sector due to the low demand for new cars. However the indicator still remains above the key level of 1.5, which ensures favorable prospects.

In addition, import prices in Switzerland increased by 9.8% y/y in January; export rose by 15.5% y/y.

It is a factor of trade balance (index increased to the level of 1.96 billion euro in January against the growth to 1.26 billion euro earlier) helps the CHF to be considered a stable currency, since the country does not require external borrowings.

Currency intervention of the National Bank of Switzerland, carried out last year, has reached its objective, according to the head of the Bank, Philipp Hildebrand. He says that Switzerland has achieved price stability and got rid of the signs of inflation. We would remind that SNB had been buying the Euro since March 2009 until the middle of 2010 to limit the growth of Franc. Hildebrand is confident that Switzerland is in more advantageous position now compared with Eurozone, where inflation amounts about 2%. Price stability, according to the monetary politician, does not give rise to complaints. 

Leading indicator KOF in February will be released on Friday.

 
 

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