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At the Forex currency market Swiss Franc rate continues to move away from the previous historic highs on Thursday, under the pressure from the USD.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and started to reverse upward, giving a pair buy signal, while volumes are decreasing. Stochastic Oscillator goes up in the neutral zone, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 0.8540, the pair USD/CHF will go to 0.8560 and 0.8590. If upward breakdown does not take place, the pair will consolidate close to the current levels.

Meeting of the Swiss national Bank will be held today; the issue of the three month rate Libor is going to be resolved there and the rate is expected to remain at the current level of 0.25%.

The data on the industrial orders in Q1 will be also presented.

It became known earlier that unemployment rate in Switzerland fell to 2.9% in May against the level of 3.1% in April and the forecast of 3.0%. It is positive data for Swiss economy because strong Franc does not prevent cohesive economic growth. As it became known earlier level of trade balance in Switzerland rose by 1.52 billion in April against the growth of 1.0 billion in March. Index of leading indicators KOF in Switzerland rose to 2.30 points in May against the forecast of growth by 2.22 points.

GDP in Switzerland has slowed down growth rate in QI this year, increasing by 0.3% on quarterly basis (+2.4% y/y) against the rise of 0.8% last quarter and the forecast of growth of 0.6 %.

In addition, index of PMI SVME in Switzerland increased to 59.2 points against the forecast of 57.5 points. It proves once again that national economy has learnt to be effective even in circumstances where national currency is expensive. The data released last week showed that CPI in Switzerland remained unchanged on monthly basis (+0.4% y/y) in May against the forecast of decline by 0.1% m/m (+0.3% y/y).

Julius Baer Group believes that it is not clear yet whether Swiss economy requires the increase in the   interest rate or not: “any rise will have an impact on the economy as a whole for a year”. However it is quite possible that local economy and its recovery process are strong enough to cope with the interest rate rise to 1%-1.5%.

Statistics released this week showed that producer prices and prices for imports decreased by 0.2% (-0.4% y/y) in May against the forecast of growth by 0.1% m/m.

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