Forex Blog
Blog-FX.Com

• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

CHF: Swiss Franc remains in range

At the Forex currency market Swiss Franc rate continues to be traded in the range of 0.9419-0.9482, however it is growing on Tuesday.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF, however it is going down, giving grounds for a pair sell signal. Stochastic Oscillator is coming out of the oversold zone, starting to form a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9475 the pair will go to 0.9500 and 0.9550. If the level of 0.9400 is exceeded, traders’ target will become the levels of 0.9350 and 0.9320.

The following Swiss data was released today:
– Retail sales in December: -0.4% y/y against +1.8% for the previous period;
– PMI in the manufacturing sector in January: 60.5 against 61.2 for the previous period.

Therefore, Swiss economy continues to demonstrate slowdown in the recovery pace. We would remind that Swiss data on Friday was also negative: leading indicator according to the Research Institute KOF fell to the level of 2.10 against the level of 2.11 in December, which became the fifth consecutive fact of reduction of the indicator. However, the data was still above than the forecast of economists (2.05)

Meanwhile, country’s economy has faced a complicated situation; however it is not a crisis. Expensive Franc became a catalyst for the complications in the economic conditions. At the same time authorities declared that SNB does not influence in any way on the CHF rate, although it bears full responsibility for the monetary policy and its contents. It became known earlier that according to UBS estimates, consumer confidence index in   Switzerland increased to the level of 1.842 in December against 1.624 in November. This is a positive indicator for the local economy. Therefore, the situation in Swiss economy remains ambiguous.

In general, taking into account the latest statistics it can be assumed that the Bank of Switzerland will not raise interest rate, at least until the middle of this year.
 

[More]
Tags:
Tags Cloud: crossover relevant swiss franc greek forward deal experienced interest equation coins forex day trading