Forex Blog
Blog-FX.Com

• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

CHF: Swiss Franc is balancing in indecision again

At the Forex currency market Swiss Franc rate is trying to go up, however technical signals do not indicate full picture of prospects for the pair USD/CHF.

Forex forecast: MACD indicator for the pair USD/CHF has crossed the signal line and merged with it which prevents from forming a signal. Stochastic oscillator is in the oversold zone and has not formed a clear signal either.

Forex recommendations: off the market.

Feasible event scenario at Forex: the pattern remains unchanged, in case of breakdown at the level of   0.9690 the pair will go to 0.9720 and 0.9760. If the level of 0.9650 is exceeded, traders’ targets will be the levels of 0.9610 and 0.9560.

At the meeting on Thursday Swiss National Bank decided to maintain quarterly rate Libor in the previous target range of 0-0.75%, as had been expected by market. We would remind that the index was revised in March 2009 last time when it was reduced by 0.25%.

In the follow- up comments the head of SNB Mr. Hildebrand noted that deflation risks in Switzerland are the negative factors for the country’s economy and worsening of the crisis situation in Eurozone exerts pressure on recovery rates of Swiss economic system. According to him Swiss economy will slow down in the coming quarters due to combination of factors. Hildebrand also stressed that it is not very easy to reduce currency risks, however he did not comment on possibility of currency intervention.

In addition, it became known that SNB has reduced positions in the Euro.
In general the head of the Bank did not say anything that would have been fundamentally new, however he once again draw attention to the high rate of the CHF and negative external factors.

Meanwhile, the situation in Swiss economy is contradictory at the moment: inflation in Switzerland demonstrates growth (CPI in November: +0.2% m/m, (+0.2% y/y) against the forecast +0.1% m/m, (+0.1% y/y), although it is moderate at the moment, however it is a positive factor for the economy, indicating stability. However producer prices and import prices in Switzerland declined by 0.2% m/m in November against expected growth by 0.1%. Unemployment rate remained at the level of 3.6% in November which agreed with the forecast. 
                                          
 

[More]
Tags:
Tags Cloud: unique action japanese yen banks liquidity procedure analyze reports ineffectual getting paid