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 being corrected after reaching historical highs once again

At the Forex currency market Swiss Franc rate has reached historical highs once again yesterday, coming up to the level of 0.9201; and it is being slightly corrected today

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and continued to go down, confirming a pair sell signal. Stochastic Oscillator has come out of the oversold zone today and is giving a pair buy signal, being in the neutral zone.

Forex recommendations: as a part of the corrective ascending movement, after the breakdown at the level of 0.9275 the pair will go to 0.9330 ? 0.9370.

As the data showed today, level of retail sales in Switzerland declined by 2.6% y/y in January against the fall by 0.8% in December. However external background still remains the main driver of the Franc’s movement, as well as possible withdrawal of the players from risks.

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

The data released eralier did not make strong impression on the Franc, although it was very favourable (real GDP in QIV: +0.9% q/q (+3.1% y/y) against the forecast of growth by 0.5% q/q (+2.8% y/y); PMI SVME rose to 63.5 points in February against the forecast of 60.5 points). Therefore, Swiss economy is strong and continues to progress along the recovery path.

Indicators of last week showed that 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 general, Franc has all chances to continue to consolidate and test new highs.

 

 
 

[More]
Tags:
Tags Cloud: u.s. louis d'or borrowing policy sizes roll-over analyze week transactions pips