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• 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 still of interest to buyers

Swiss Franc rate continues to grow at the Forex currency market in the middle of the week.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is ready to cross signal line from bottom upward, thus, maintaining a pair buy signal. Stochastic oscillator continues to give a pair sell signal, being in the neutral zone.

Forex recommendations: if current investors’ sentiment is maintained, traders’ targets will be the levels of 0.9575 and 0.9520 on Wednesday.

In general the situation in Swiss economy remains unchanged. Macro-economic background this week is as follows: the data on the index of investor economic expectations in February - ZEW will be released on Thursday, (forecast -10.0, the previous value-18.4).
It became known earlier that CPI increased by 0.4% m/m, +0.3% y/y in January, against the forecast of -0.2% m/m, +0.6% y/y; consumer confidence SECO in January: 10 against preliminary level of 7.  Inflation rate indicates slowdown of the recovery process in Swiss economy and high rate of the Franc is also a party at fault.

We would remind that statistics on Swiss unemployment rate released last week showed that the rate remained at the level of 3.5%. According to the estimates of the State Secretariat of Economic Affairs (SECO), unadjusted unemployment rate amounted to 3.8% last month. Thus, a number of unemployed in Switzerland totaled to 136.542 thousand (earlier: 140.090 thousand).   According to UBS study the level of private consumption increased to the level of 1.7% in January, which above the average annual level.

Meanwhile, economic situation in Switzerland looks ambiguous. On the one hand levels of exports in the country increased by 10.9% y/y in December, the index rose mostly due to the demand for watches (export of watches in December: +25.5%, to 1.53 billion francs). At the same time trade surplus (supported by the data mentioned above) rose to 1.3 billion francs in December and levels of import increased by 10.5% y/y (14.2 billion francs). On the other hand, according to the Research Institute KOF, leading indicator fell to the level of 2.10 against the level of 2.11 in December, which became the fifth consecutive fact of reduction of the indicator. However, the data was still above than the forecast of economists (2.05). Retail sales in December declined by0.4% y/y against +1.8% for the previous period; PMI in the manufacturing sector in January was at the level of 60.5 against 61.2 for the previous period.

 

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