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At the Forex currency market Swiss Franc rate is traded upward in response to the positive external background and stable statistics..

Forex forecast: MACD indicator for the pair USD/CHF is in the positive area and is going down, giving a sell signal, volumes are average. Stochastic Oscillator is going down in the neutral   

Forex recommendations: in case of breakdownat the level of 0.9320, the pair USD/CHF will go to ? 0.9310 and 0.9280. Achance that the pair will consolidate at the current levels is high.

Statistics released earlier showed that business activity index PMI SVME in Switzerland increased to 50.7 points in December against 44.8 points in November.

According to the data released in the end of December 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. It became known earlier that 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. Index is favourable; however it is based on the efforts of the local regulator to curb the rate of the Franc.

Observers from Wells Fargo believe thateconomic indexes in Switzerland demonstrated slowdown all the year round; manyindexes give indication that weakness will continue for the next six months.According to them, domestic demand is also getting lower which is a negativesign. As for the rate, it is most likely that SNB will adhere to the zerolevel, due to soft inflation.

Three-month Libor rate was left in the rangeof 0-0.25%, closer to zero; the Bank did not change pegging level of Franc toEuro, maintaining the actual level of 1.20.  In the follow up comments the headof SNB Mr. Hildebrand stressed that the regulator will continue to maintain thetarget rate of CHF, with the help of purchases of foreign currency in unlimitedquantities and additional package of measures if situation requires. SNB isready to maintain high level of liquidity, as inflation growth is not expected.In general, economy of the country depends a lot on the European crisis.Apparently, SNB has adopted attitude of an onlooker, keeping in place existingmanagement tools, being pretty confident that they always have time to startintervention.

Swiss National Bank noted earlier that theregulator is prepared to take additional measures if situation at Forexdeteriorates. According to SNB, strong Franc creates extra problems for theeconomy and the issue of negative interest rates and control over the capitalmovement is being thoroughly scrutinized in the Bank. GDP in Switzerland will amount to1.5%-2.0% this year; main growth will be attributed to the results of the firstpart of the year. 

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