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Swiss Franc rate is traded slightly upward at the Forex currency market on Wednesday maintaining positions near historic highs, which it had reached this week.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and goes down, forming a pair sell signal; while volumes remain average. Stochastic Oscillator tends to come out of the oversold zone, giving a pair buy signal

Forex recommendations: in case of breakdown at the level of 0.8500, the pair USD/CHF will go to 0.8480 and to new lows of 0.8465. If downward breakdown does not take place, the pair will consolidate close to the current levels.

GDP in Switzerland slowed down growth rate in QI this year, increasing by 0.3% on quarterly basis (+2.4% y/y) against the rise of 0.8% last quarter and the forecast of growth of 0.6 5%.

According to estimates of the SNB, the main activator for economic growth in Switzerland is still national consumer demand, triggered by the rise in the demand for houses and health care expenditure, as well as high level of export.

Mr. Danten, a board member of the Swiss national Bank, said commenting statistics, that economy of Switzerland is developing well, which is demonstrated by strong Swiss Franc.

Index of leading indicators KOF in Switzerland rose to 2.30 points in May against the forecast of growth by 2.22 points.

Julius Baer Group believes that it is not clear yet whether Swiss economy requires the increase in the   interest rate or not: “any rise will have an impact on the economy as a whole for a year”. However it is quite possible that local economy and its recovery process are strong enough to cope with the interest rate rise to 1%-1.5%.

Note: that real effective exchange rate of the Franc grew by 10% last year.

It became known earlier that the level of trade balance in Switzerland rose by 1.52 billion in April against the rise of 1.0 billion in March. In addition, exports in Switzerland increased by 7.9% in April against the fall by 3.1% in March.

The data on the retail sales and PMI in Switzerland will be released on Wednesday.

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