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At the Forex currency market Swiss Franc rate is traded with minimal deviation at the beginning of the week after a sharp spike in the Asian session. Now investors have closed buying transactions of the morning and are waiting for mew catalysts.

Forex forecast: MACD indicator is in the negative area for the pair USD/CH; it started to go up and is giving signal of moderate buying. Stochastic Oscillator goes down in the neutral zone and is giving a sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9200, the pair USD/CHF will go to 0.9210 and0.9230. If optimism rises at trades, target for sales will be 0.9150.Consolidation near current levels is possible.

Economic situation in Switzerland remains almost unchanged in Switzerland.

It became known earlier that index of economic expectations ZEW rose to -21.2 points in February against the level of-50.1 points 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 the forecast of 3.5% and previous value of 3.3%. This is the highest level of the index since last spring indicating unfavourable situation in the national economy.

According to the previous data, inflation in Switzerland 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 Swiss production rose in price by 0.1% m/m. Therefore, inflation threat is becoming more tangible in Switzerland.

Monetary politician Mr. Jordan said earlier that SNB is firmly determined to maintain the level of 1.20 in the pair Euro/Franc. The bank will be also prepared to adopt additional measures if economic situation requires. Jordan confirmed that this year economic growth rate has slowed down in Switzerland, although there is no risk of inflation. He believes that Franc is still too strong and reduction in its price is urgently required.

Minister of economic affairs of Switzerland acknowledged yesterday that Franc is overvalued, however presently this fact does not 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.

We would remind that Swiss economists said earlier 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 in 2012.

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