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At the Forex currency market Swiss Franc rate is traded upward on Monday: sales ofthe last week were of the emotional nature and now external background enables the CHF to regain slightly.

Forex forecast: MACD indicator for the pair USD/CHF is inthe positive area and standing still, volumes are average, and is not giving aclear signal. Stochastic Oscillator continues to go up in the overbought zone and is giving a buy signal.

Forex recommendations: in case of breakdownat the level of 0.9550, the pair USD/CHF will go to 0.9560 and 0.9580. The paircan go to 0.9510/0.9505 as part of correction.

It became known today that unemployment ratein Switzerland increased to 3.3% in December against expectations of 3.2% andthe level of 3.1% in November. Obviously, slowdown in the national economy still goes on.

The head of Swiss National Bank, Mr.Hildebrand received a vote of confidence from Swiss government: earlier markethad discussed information about wife of the monetary politician, an ex- trader, who bought USD a few weeks before the Franc was pegged to the Euro.

The head of the SNB reiterated that he is not going to leave his post as he has never break any laws and has nothing to dowith his wife's business.

Observers from Wells Fargo believe that economic indexes in Switzerland demonstrated slowdown all the year round; many indexes give indication that weakness will continue for the next six months. According to them, domestic demand is also getting lower which is a negative sign. As for the rate, it is most likely that SNB will adhere to the zero level, due to soft inflation. Statistics released earlier showed that business activity index PMI SVME in Switzerland increased to 50.7 points in December against 44.8 points in November. Three-month Libor rate was left in the rangeof 0-0.25%, closer to zero; the Bank did not change pegging level of Franc toEuro, maintaining the actual level of 1.20. In the follow up comments the headof SNB Mr. Hildebrand stressed that the regulator will continue to maintain thetarget rate of CHF, with the help of purchases of foreign currency in unlimitedquantities and additional package of measures if situation requires. SNB isready to maintain high level of liquidity, as inflation growth is not expected.

GDP in Switzerland will amount to 1.5%-2.0% this year;main growth will be attributed to the results of the first part of the year.

According to the data released in the end of December leading indicators index KOF fell to 0.01 points in December against the forecast of 0.23 points and previous revised value of 0.34 points. Itbecame known earlier that trade balance in Switzerland rose by 3.0 billion francs in November against the forecast of +2.00 billion francs and previous value of +2.15 billion francs. Index is favourable; however it is based on the efforts of the local regulator to curb the rate of the Franc.

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