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At the Forex currency market Swiss Franc rate experiences a slight correction on Monday after a sharp strengthening last week amid USD’s weakness.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is rising, giving a pair buy signal. Stochastic Oscillator has entered the oversold zone today, giving a pair sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakup at the level of 0.9090 the pair will go to 0.9110 and 0.9130. If the level of 0.9070 is broken down, sellers’ targets will be 0.9060 and 0.9045.

Swiss National Bank adopted measures of verbal intervention against the Franc last week: representatives of the SNB said following the meeting that strong currency is a hard burden for the economy and its inflated price will trigger a slowdown of  economic growth – largely, due to the decrease of the export volumes. A couple of weeks ago Previously Swiss National Bank started to indicate that intervention of possible: representative of the regulator Mr. Dantin said that the Bank is able to ensure price stability even amid excess liquidity. In addition the politician noted that the cost of the intervention at the currency market will be determined by the information pressure.

As it became known earlier, the level of real retail sales in Switzerland increased by 1.5% m/m in February against the decrease by 2.4% m/m in January. At the same time SVME-PMI index decreased to the level of 59.3 points in March against the level of 63.5 points seen previously.
According to the data released the day before, the level of CPI in Switzerland increased by 0.6% m/m (+1.0% y/y) in March against the forecast of growth by 0.2% m/m. It is a mixed factor for Swiss economy, because it indicates recovery as well as serious inflation pressure.
Level of three-month LIBOR is currently at the level of 0.25%.

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