At the Forex currency market Swiss Franc rate goes down on Thursday, however still remaining however in the range of 0.9660-0.9785.
Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and continues to grow, giving a pair buy signal. Stochastic oscillator has left overbought zone today and is giving a pair sell signal.
Forex recommendations: off the market.
Feasible event scenario at Forex: in case of breakdown at the level of 0.9700 the pair will go to 0.9750 and 0.9770. If the level of 0.9660 is exceeded, traders’ targets will be the levels of 0.9610 and 0.9560.
In general the economic situation in Switzerland has not changed significantly.
Unemployment rate in Switzerland increased to 3.8% in December against the forecast of 3.7% and the previous value of 3.6%. It is a negative indication for the Franc at the moment; however attention of the traders is focused on the Eurozone.
It became known earlier that consumer price index in Switzerland remained unchanged on monthly basis in December, demonstrating the rise by 0.5% on annual basis; while analytics had expected the growth by 0.2% m/m and +0.3% y/y. It became known on Friday that Swiss national Bank refused to accept Portuguese state bonds as collateral for the repo transactions –earlier the same action has been taken for Irish securities. Thus, SNB abandoned unnecessary risks, becoming the first regulator who acknowledged big problems of sovereign debts in the peripheral countries of Eurozone.
According to KOF estimates (Swiss institute of research on economic cycles) Swiss Franc will retain the status of a protective asset and a refuge as long as the period of tension will be maintained in Europe.
A report of Credit Suisse AG and Osec which was made public earlier showed that sentiments of Swiss exporters are improving despite the recent highs of the Franc. Companies are confident that demand for the goods of Swiss production will remain high over the next few months, although the threats posed by the expensive CHF are still present.
According to the research, export barometer in QI of this year will amount to 0.6 which is higher than the levels of Q VI 2010. In general the results of the QI of this year are expected to be favourable in the export sector. Companies are taking into account that after the rise of the Franc by 16% last year the demand from the Eurozone will be lower but not critical.
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