Forex Blog
Blog-FX.Com

At the Forex currency market Swiss Franc rate almost stands still in the trades on Thursday.

Forex forecast: MACD indicator for the pair USD/CHF has broken through the signal line from top to bottom and is in the negative area now, giving a sell signal. Stochastic Oscillator has come out of the oversold zone and is giving a buy signal, increasing in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at 0.9170, USD/CHF will go to 0.9190 and 0.9230. If upward breakdown does not take place, the pair will aim at 0.9110.

According to statistics released today, Swiss economy is getting weaker: Trade surplus amounted to CHF2.0 billion in December against the level of CHF2.945 billion in November.

Last week, representative of SNB Mr. Dantin said that, in perspective lowering of Franc rate is possible because measures to restrict its growth are going to be introduced. He once again outlined well-known positions of SNB about possibility of unlimited purchases of foreign currency in order to keep Franc in permissible price limits.

It became known earlier that Swiss consumption indicator UBS rose to 0.92 points in December against preliminary expectations of 0.78 points. Theoretically, the fact that the index is successfully recovering can be an indication that previously it has reached its bottom and now there is no threat of serious slump. In the nearest future a mode rate increase in consumer sentiments can be predicted. Domestic consumption shall receive energetic support, as inflow of labour power can become a positive outcome of this. We would remind that the head of Swiss National Bank Phillip Hildebrand resigned at the beginning of January. The name of successor is still unknown and it is also not clear if a new governor of the Bank will adhere to the same policy as his colleague in monetary issues. Swiss government noted earlier that search for the candidate for SNB governor will take several months. Swiss government indicated intention to revise policy of super vision over SNB activity.

Swiss Minister of Economic affairs believes that second half of this year is going to be better than the first one, Swiss economy is stable enough to survive mild recession. Naturally, it will affect the economic growth rate in the country: slow growth rate of GDP is expected in 2012. The politician also stressed that SNB has high credit worthiness.

Tags: