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CHF: Swiss Franc is losing positions under pressure from regulator

At the Forex currency market Swiss Franc rate is traded downward on Thursday; redouble attention of Swiss authorities to the Franc is interpreted by the investors as a kind of verbal intervention.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF, however it is moving along the signal line, not giving a clear signal. Stochastic oscillator has come out of the oversold zone today and is giving a pair buy signal.

Forex recommendations: in case of breakdown at the level of 0.9450 the pair will go to 0.9500 and 0.9550.

Now, Swiss Franc still remains in the focus of regulator’s attention. The head of the Swiss National Bank Mr. Hildebrand noted today that rise of the Franc is a serious risk for some sectors of economy, however, he emphasized that macro-economic indices demonstrate steady growth of the domestic economy at the moment. The head of Swiss National Bank Mr. Hildebrand said earlier, that in his opinion, stability of Eurozone is the key factor of economic growth in Switzerland. He also expressed confidence that the region will revert   to quiet times.

Swiss authorities stated this week that country’s economy has faced a complicated situation; however it is not a crisis. Expensive Franc became a catalyst for the complications in the economic conditions. At the same time authorities declared that SNB does not influence in any way on the CHF rate, although it bears full responsibility for the monetary policy and its contents. It became known earlier that according to UBS estimates, consumer confidence index in   Switzerland increased to the level of 1.842 in December against 1.624 in November. This is a positive indicator for the local economy. Therefore, the situation in Swiss economy remains ambiguous.

Note, the possibility of the regulator’s unilateral intervention in the market can become the reality, although probability of currency intervention is estimated as low so far.

 
 

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