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 reverts to growth

Swiss Franc rate is traded slightly upward at the Forex currency market on Monday after the sharp fall last week.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF, however it is still going up and is ready to cross signal line from bottom upward, continuing to give a pair buy signal. Stochastic oscillator remains in the overbought zone today, starting to form a pair sell signal.

Forex recommendations: taking into account external background, we can expect sales for the pair in case of breakdown at the level of 0.9685, in such state of affairs traders’ targets will become the levels of 0.9625 and 0.9575.

Worth noting, that bulls can be back for the pair USD/CHF.

In general economic situation in Switzerland remains unchanged. We would remind that statistics on Swiss unemployment rate released last week showed that the rate remained at the level of 3.5%. According to the estimates of the State Secretariat of Economic Affairs (SECO), unadjusted unemployment rate amounted to 3.8% last month. Thus, a number of unemployed in Switzerland totaled to 136.542 thousand (earlier: 140.090 thousand).   According to UBS study the level of private consumption increased to the level of 1.7% in January, which above the average annual level.

In addition, CPI increased by 0.4% m/m, +0.3% y/y in January, against the forecast of -0.2% m/m, +0.6% y/y; consumer confidence SECO in January: 10 against preliminary level of 7.  Inflation rate indicates slowdown of the recovery process in Swiss economy and high rate of the Franc is also a party at fault for it. State authorities have been made official comments on inflation factor yet.

Economic situation in Switzerland looks ambiguous so far. On the one hand levels of exports in the country increased by 10.9% y/y in December, the index rose mostly due to the demand for watches (export of watches in December: +25.5%, to 1.53 billion francs). At the same time trade surplus (supported by the data mentioned above) rose to 1.3 billion francs in December and levels of import increased by 10.5% y/y (14.2 billion francs). On the other hand, according to the Research Institute KOF, leading indicator 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). Retail sales in December declined by0.4% y/y against +1.8% for the previous period; PMI in the manufacturing sector in January was at the level of 60.5 against 61.2 for the previous period.

[More]
Tags:
Tags Cloud: decline deal conflicting smallest the bretton woods system worrying report deposited squirrel best forex trading