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At the Forex currency Swiss Franc rate started smooth correction from local highs at the end of the week.

Forex forecast: MACD indicator for the pair USD/CHF is declining in the positive area, while volumes are minimal, and is giving a sell signal. Stochastic Oscillator tends to go out of the oversold zone and started to shape a buy signal.

Forex recommendations: in case of breakdown at 0.9230, USD/CHF will go to ? 0.9240 and 0.9260.

In addition to the fact, that it is the end of the week, when investors prefer profit taking for some of the positions, statistics is not favourable for Franc either. Index of leading indicators KOF fell by 17% in January against the forecast of decline of 10%.

This is the consequence of expensive currency, and this only increases possibility of another currency intervention against CHF.

Representative of SNB Mr. Dantin said earlier, that, lowering of Franc rate is possible in perspective, because measures to restrict its growth are going to be introduced. He once again outlined well-known positions of SNB about possibility of unlimited purchases of foreign currency in order to keep Franc in permissible price limits.

We would remind that the head of Swiss National Bank Phillip Hildebrand resigned at the beginning of January. The name of successor is still unknown and it is also not clear if a new governor of the Bank will adhere to the same policy as his colleague in monetary issues. Swiss government noted that search for the candidate for SNB governor will take several months.

In January, investors' economic expectations index ZEW was at the level of -50.1 points against -72 points a month earlier. This is a positive signal, indicating some stability in the country. Leading indicators index KOF fell to 0.01 points in December against the forecast of 0.23 points and previous revised value of 0.34 points. Trade balance in Switzerland rose by 3.0 billion francs in November against the forecast of +2.00 billion francs and previous value of +2.15 billion francs. The index is positive; however it is based on the efforts of the local regulator to curb the rate of the Franc. Earlier, Swiss government indicated intention to revise policy of supervision over SNB activity. A week ago Swiss authorities said that government does not have instruments for direct influence on SNB. Representatives of the Finance Ministry of the country stated that politicians have no ground to cast doubts on Bank's strategies; however the issue with Hildebrand requires special consideration. Ministry also stressed that new head of SNB will be appointed only after additional discussion.

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