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At the Forex currency market Swiss Franc rate continues growth started the day before on Thursday.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and continues rising, maintaining a former buy signal. Stochastic Oscillator is sliding in the neutral zone today, giving a pair sell signal.

Forex recommendations: in case the level of 0.9175 is broken down sellers’ targets will be 0.9160 and 0.9150, otherwise the pair will start consolidation near the current levels.

According to the data released the day before, the level of CPI in Switzerland increased by 0.6% m/m (+1.0% y/y) in March against the forecast of growth by 0.2% m/m. It is a mixed factor for Swiss economy, because it indicates recovery as well as serious inflation pressure.
Level of three-month LIBOR is currently at the level of 0.25%.

As it became known earlier, the level of real retail sales in Switzerland increased by 1.5% m/m in February against the decrease by 2.4% m/m in January. At the same time SVME-PMI index decreased to the level of 59.3 points in March against the level of 63.5 points seen previously. Thereby the data was mixed, but CHF didn’t respond to it remarkably, being pressured by USD amid strong U.S. macroeconomic data.

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.

Note that verbal interventions are ordinary for SNB. Previously Swiss National Bank started to indicate that intervention of possible: representative of the regulator Mr. Dantin said that the Bank is able to ensure price stability even amid excess liquidity. In addition the politician noted that the cost of the intervention at the currency market will be determined by the information pressure.

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