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At the Forex currency market Swiss Franc rate tests new boundaries of the trading corridor on Wednesday morning: after a sharp fall yesterday, guidelines of the market have mixed up.

Forex forecast: MACD indicator for the pair USD/CHF has broken through the signal line from bottom to the top and came into the positive area, maintaining a weak buy signal. Stochastic Oscillator goes up in the neutral zone and is giving a similar signal.

Forex recommendations: in case of breakdown at the level of 0.8570, the pair USD/CHF will go to 0.8590 and 0.8610. If upward breakdown does not take place, the pair will consolidate at the current levels.

Something that market has never expected took place yesterday: Swiss National Bank fixed exchange rate of the Euro in pairing with Franc at the minimum permissible level of 1.20, causing a rally in the market. SNB noted in the comments that it is going to buy foreign currency in unlimited quantities to prevent growth of the Franc, as the CHF adversely affects economy of Switzerland.

Statistics which was made public before this decision showed that Switzerland slides down to deflation: CPI in August fell by 0.3% m/m against the forecast of decline by 0.2% m/m.

Therefore, now the SNB will carefully monitor the situation at the currency market and carry out interventions without warning.

Last week, agency Reuters announced that according to the information from some sources Swiss authorities are going to adopt a new program to support economy which will become the second one. Program can include measures to support innovations and also a package of measures to support infrastructure sector. It is expected that the package will be presented at the winter session of the Parliament. Meanwhile, the program will be targeted not to the external factors but to neutralize the impact of the expensive Franc.

According to the data released earlier, unemployment rate in Switzerland remained at the level of 3.0% in July. Statistics released earlier showed that the level of retail sales in Switzerland increased by 7.4% in June against the revised level of -3.9% in May. In addition, index of PMI SVME rose to 53.5 points in July against the forecast of 52.5 points.

It became known earlier that producer prices and imports prices in Switzerland declined by 0.7% m/m (-0.5% y/y) in July against the fall of 0.6% m/m in June. In addition, consumer confidence index in Switzerland fell to -17 points in Q3 against the forecast of -5 points. Statistics released earlier showed that consumption indicator UBS fell to 1.29 points in July against the level of 1.52 points in June. The indicator has been sliding down not for the first month, showing negative tendencies in the economy.

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