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At the Forex currency market Swiss Franc rate goes up at trades in response to positive sentiments at the market.

Forex forecast: MACD indicator for the pair USD/CHF is in the negative area;it has shifted to sideways and is not giving a clear signal, while volumes areaverage. Stochastic Oscillator goes down in the neutral zone and is giving asell signal.  

Forex recommendations: in case of breakdown at 0.9080, the pair USD/CHF will go to 0.9070 and 0.9060.

CHF is responsive to external background; however there are all grounds to believe that elation in the market will not belong

According to the previous data, inflation inSwitzerland fell by 0.4% m/m (_0.8% y/y) in January against expectations of decline of 0.2% m/m. This is the fourth consecutive drop in the index and at the same time it is maximal fall since October 2009. Expensive Yen seriously hampers the progress of economy: at the beginning of the year import of consumer goods fell by 1.8% m/m (-3.2% y/y), however the goods of Swissproduction rose in price by 0.1% m/m. Therefore, inflation threat is becomingmore tangible in Switzerland. It became known earlier that index of economicexpectations ZEW rose to -21.2 points in February against the level of -50.1points in January. Most likely it is the reflection of monetary efforts of SNB.Unemployment rate in the country amounted to 3.4% in January against theforecast of 3.5% and previous value of 3.3%. This is the highest level of theindex since last spring indicating unfavourable situation in the nationaleconomy.

Monetary politician Mr. Jordan said earlier that SNB is firmly determined to maintain the level of 1.20 in Euro/SNF. The Bank is also prepared to adopt additional measures if economic situation requires. Jordan also confirmed that economic growth rate has slowed down in Switzerland, although there is no risks that inflation will increase in thecountry. He believes that Franc is still too expensive and reduction in itsprice is urgently required.

We would remind that Swiss economists saidearlier that second half- year is going to be better than the first one, Swiss economy is stable enough to overcome mild recession. Naturally, it will affect economic growth rate in the country: slow growth pace of GDP is expected in2012.

Minister of Economic Affairs of Switzerland acknowledged earlier that Franc is overvalued, however presently this fact doesnot alarm government, since, according to the Minister; the country has learnt to live under the conditions of some volatility. Forecasts of the government remain unchanged: it is expected that GDP in Switzerland will rise by 0.5% this year.

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