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At the Forex currency market Swiss Franc rate is getting weaker, although the volumes for the pair USD/CHF are not large.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and continues to go down, maintaining a pair sell signal. Stochastic Oscillator goes up in the neutral zone, giving a pair buy signal.

Forex recommendations: if bullish sentiments are maintained in the market and in case of breakdown at the level of 0.9100, the pair will go to 0.9120 and 0.9145/50.

Swiss National Bank adopted measures of verbal intervention against the Franc last week: representatives of the SNB said following the meeting that strong currency is a hard burden for the economy and its inflated price will trigger a slowdown of  economic growth – largely, due to the decrease of the export volumes.

The level of three-month LIBOR rate was left unchanged, at the 0.25%, as expected.

Statistics previously demonstrated that level of CPI in Switzerland increased by 0.4% m/m (+0.5% y/y) in February against the forecast of growth by 0.3% m/m. Thus, inflation in Switzerland has been increasing slightly so far, which on one hand, indicates economic recovery in the country and on the other hand does not give rise to discussions of the interest rate revision.

Statistics released the day before yesterday showed that level of trade balance in Switzerland increased to 2.49 billion francs in February against the value of 2.04 billion francs in January – it is favourable information. In addition, levels of import rose by 0.3% in February; export levels – by 4.2%, +16.53 billion francs.

Therefore, levels of exports in Switzerland are growing even when the Franc is strong, maintaining support for the entire economy
Statistics released earlier showed that volume of industrial output in Switzerland increased by 6.1% y/y in QIV. Before that it became known that index of economic expectations ZEW in Switzerland increased to -13.5 points in March against the previous level of -17.2 points. It is a favourable indication for the local economy.

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