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Swiss Franc rate is being corrected at the Forex currency market on Wednesday after the rise to the historical peak yesterday, when new highs at the level of 0.9140 have been reached.
 
Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and continues to move along the signal line, not giving a clear signal. Stochastic Oscillator has come into the oversold zone on Wednesday, maintaining a pair buy signal. 
 
Forex recommendations: it is not excluded that after a technical rebound, sales for the pair will resume at the previous lows of 0.9140 and further 0.9070.

Statistics of the last week demonstrated that level of CPI in Switzerland increased by 0.4% m/m (+0.5% y/y) in February against the forecast of growth by 0.3% m/m. Thus, inflation in Switzerland has been increasing slightly so far, which on one hand, indicates economic recovery in the country, and on the other hand, does not give rise to discussions of the interest rate revision.

According to the data released last Tuesday, unemployment rate in Switzerland reduced to 3.6% m/m in February against the previous rate of 3.8% m/m. In general it is a positive indicator for Swiss economy, which indicates that economic system of the country is being recovering steadily, despite high rate of the national currency.

In general, amid total global instability, the Franc’s status of a protective currency enables to test new historical highs. 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.

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