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At the Forex currency market Swiss Franc rate is traded sluggishly on Tuesday as apparently Swiss national Bank continues to take measures to hold back the inflow of speculators in the currency. Statistics released yesterday was weak which favoured the rollback of the Franc.

Forex forecast: MACD indicator for the pair USD/CHF has broken through the signal line from top to bottom and is traded in the negative area, indicating moderate trades. Stochastic Oscillator has come into overbought zone, and is giving a buy signal.

Forex recommendations: in case of breakdown at the level of 0.9045, the pair USD/CHF will go to 0.9050 and 0.9075.

Unemployment rate in Switzerland rose to 2.9% which was expected rise from 2.8%, however traders were upset. According to statistics released earlier monetary reserves in Switzerland decreased to 242.7 billion francs in October against 282.4 billion in September.

Representative of Swiss National Bank Mr. Dantin said last week that strong Franc continues to exert pressure on the economy of the country and in the event of risks of deflation the SNB is prepared to take urgent measures. He reiterated that economy of Switzerland is extremely dependent on exports.

According to the annual report of the SNB, over the second half of the year economy of the country will move in the sideways, due to the impact of the expensive Franc and sharp decline in foreign demand. Thus, GDP in Switzerland will amount to 1.5%-2.0% this year and main growth will attribute to the results of the first part of the year. SNB noted in the comments that if stringent monetary measures had not been taken the economy would have slipped to a recession. SNB expects that inflation will be at the level of 0.4% in 2011 and at the level of 0.3% next year.

Producer prices and import prices in Switzerland declined by 0.1% m/m (-2.0% y/y) in September; Franc hardly reacted to statistics.

Surplus of trade balance amounted to 1850 billion SHF in September. It became known earlier that consumption indicator UBS in Switzerland rose to 0.84 points in September against the revised level of 0.80 points in August.  Taking into account that the data reflects the figures of the months when SNB has fixed the rate of the Franc, the index looks very much positive.

Judging by dynamics of the Franc last week, Swiss National Bank ponders about the maximum permissible rate of EUR/Franc. The news about lowering the level of currency reserves has also been unfavourable for SHF. As it became known earlier index of business activity PMI in Switzerland fell to 46.9 points in Switzerland against the forecast of 47.7 points. For the present, it is also the aftereffects of the expensive national currency.

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