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At the Forex currency market Swiss Franc rate is traded upward  at the Forex currency market on Thursday in response to the initiative of the U.S. federal reserve which has been supported by Swiss National Bank too.

Forex forecast: MACD indicator for the pair GBP/USD is in the positive area and started to go down, giving a sell signal; volumes are decreasing at the same time.  Stochastic Oscillator continues to decline in the neutral zone, giving a sell signal.

Forex recommendations: in case of break down at the level of 0.9110, the pair will go to 0.9100 and 0.9080. If downward breakdown does not take place, the pair  will consolidate at the current levels.

It became known today that GDP in Switzerland rose by 0.2% q/q (+1.3% y/y) in Q3 against the forecast of growth of 0.1% q/q (1.7% y/y). The data was positive on quarterly basis indicating that efforts of the Central Bank to curb the rates of the Franc are effective.

According to the estimates of Swiss National Bank, GDP in Switzerland will amount to 1.5%-2.0% this year; main growth will be attributed to the results of the first part of the year. SNB noted in the comments that if stringent monetary measures had not been taken the economy would have slipped to a recession. SNB expects that inflation will be at the level of 0.4% in 2011 and at the level of 0.3% next year.

Unemployment rate in Switzerland rose to 2.9%, which had been an expected rise from 2.8%. It became known last week that trade balance in Switzerland amounted to 2.15 billion francs in October against the forecast of 2.06 billion francs. The data is good, considering global slump in demand and expensive Franc.

Representative of SNB Mr. Jordan reported earlier that Swiss regulator does not need external guidance on monetary policy, as it is an independent institution and does not intend to receive instructions from business groups and politicians. SNB will continue to take appropriate measures if it is required considering the state of economic forecasts and deflation. According to him, slowdown in economic growth in Switzerland, which had taken place earlier, was caused by high exchange rate of Swiss Franc.

Trade surplus in Switzerland amounted to 1850 billion SHF in September. It became known earlier that consumption indicator UBS in Switzerland rose to 0.84 points in September against the revised level of 0.80 points in August.  Taking into account that the data reflects the figures of the months when SNB has fixed the rate of the Franc, the index looks very much positive.

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