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At the Forex currency market Swiss Franc rate is traded downward in response toobscure external background.

Forex forecast: MACD indicator for the pair USD/CHF is in the positive area and is going down, giving a sell signal, volumes are average.Stochastic Oscillator is going up gradually in the neutral zone and is giving abuy signal.  

Forex recommendations: in case of breakdownat the level of 0.9430, the pair USD/CHF will go to 0.9450 and 0.9480. A chance that the pair will consolidate at the current levels is high.

Yesterday, the head of Swiss National Bank,Mr. Hildebrand received a vote of confidence from Swiss government: earlier market had discussed information about wife of the monetary politician, extrader, who bought USD a few weeks before the Franc was pegged to theEuro. 

Statistics released earlier showed thatbusiness activity index PMI SVME in Switzerland increased to 50.7 points inDecember against 44.8 points in November. Three-month Libor rate was left inthe range of 0-0.25%, closer to zero; the Bank did not change pegging level ofFranc to Euro, maintaining the actual level of 1.20.  In the follow up commentsthe head of SNB Mr. Hildebrand stressed that the regulator will continue tomaintain the target rate of CHF, with the help of purchases of foreign currencyin unlimited quantities and additional package of measures if situationrequires. SNB is ready to maintain high level of liquidity, as inflation growthis not expected. In general, economy of the country depends a lot on theEuropean crisis. Apparently, SNB has adopted attitude of an onlooker, keepingin place existing management tools, being pretty confident that they alwayshave time to start intervention.

 Swiss National Bank noted earlier that theregulator is prepared to take additional measures if situation at Forexdeteriorates. According to SNB, strong Franc creates extra problems for theeconomy and the issue of negative interest rates and control over the capitalmovement is being thoroughly scrutinized in the Bank. 

GDP in Switzerland will amount to 1.5%-2.0% this year;main growth will be attributed to the results of the first part of the year. According to the data released in the end of Decemberleading indicators index KOF fell to 0.01 points in December against theforecast of 0.23 points and previous revised value of 0.34 points. It becameknown earlier that trade balance in Switzerland rose by 3.0 billion francs inNovember against the forecast of +2.00 billion francs and previous value of+2.15 billion francs. Index is favourable; however it is based on the effortsof the local regulator to curb the rate of the Franc. Observers from Wells Fargobelieve that economic indexes in Switzerland demonstrated slowdown all the yearround; many indexes give indication that weakness will continue for the nextsix months. According to them, domestic demand is also getting lower which is anegative sign. As for the rate, it is most likely that SNB will adhere to the zero level, due to soft inflation.

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