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At the Forex currency market Swiss Franc rate remains close to the historic highs on Tuesday, since investors have not decided on their trading sentiment.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is going down, maintaining a pair sell signal. Stochastic Oscillator remains in the oversold zone today, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 0.8650 the pair will retest highs at 0.8620.

It became known yesterday, that real retail sales in Switzerland decreased by 0.2% in March against the growth by 1.8% in February. In addition index SVME – PMI in Switzerland fell to 58.4 points in April against the previous level of 59.3 points.

It also became known that consumption indicator UBS in Switzerland rose to 1.660 points in March against the revised level of 1.453 points in February; while volume of export in Switzerland fell by 4.8% m/m in March against the level of +3.6% m/m in February. Franc has ignored this statistics.

Real level of retail sales in Switzerland increased by 1.5% m/m in February against the decline by 2.4% m/m in January; level of CPI in Switzerland rose by 0.6% m/m (+1,0% y/y) in March against the forecast of growth by 0.2% m/m. It is an ambiguous factor for Swiss economy as on the one hand the economy strengthens and on the other hand it suffers from significant inflationary pressure.

The head of the National bank of Switzerland, Mr. Hildebrand noted that strong and expensive Franc undermines exports and harms tourism industry, therefore negative impact of the CHF can be stronger than predicted. “We intend to take any measures to achieve price stability” stressed monetary politician.

According to him, downside risks to recovery are still preserved, although economy demonstrates more steady growth rate than previously expected.

Statement made by Hildebrand that long term expansionary monetary policy constitutes a menace to some industrial sector is worthy of being noted.

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