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• Rouble is losing positions again in pairing with USD and EUR [11/10/2011]
• NZD: New Zealand Dollar is descending [11/10/2011]
• AUD: sales of Australian Dollar do not subside [11/10/2011]
• JPY: Japanese Yen remains in the narrow trade range [11/10/2011]

CHF: Swiss Franc took up a position in the outset

Swiss Franc rate is traded in the range slightly upward at the Forex currency market on Tuesday, because investors incline to treat CHF as a safe harbor in the turbulent times– when the situation in Libya threatens go out of control.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF; however it started to move along the signal line and is not giving a clear signal. Stochastic Oscillator remains in the oversold zone today and continues to give a pair sell signal.

Forex recommendations: if current investors’ sentiment is maintained at the market case of breakdown at the level of .9440 the pair will go to 0.9410 and 0.9380.

The following Swiss data was released today: 

– Indicator of consumption decreased to the level of 1.676 points in January against the previous level of 1.829 points;

– Level of trade balance increased to the level of 1.96 billion euro in January against the growth to 1.26 billion euro earlier;

It is a factor of trade balance that helps the CHF to be considered a stable currency as the country does not require external borrowings.

This week will be eventful for Switzerland: employment rate excluding agricultural sector for QIV last year will be made public on Thursday, and leading indicator KOF in February will be released on Friday. 

Currency intervention of the National Bank of Switzerland, carried out last year, has reached its objective, according to the head of the Bank, Philipp Hildebrand. He says that Switzerland has achieved price stability and got rid of the signs of inflation. We would remind that SNB had been buying the Euro since March 2009 until the middle of 2010 to limit the growth of Franc. Hildebrand is confident that Switzerland is in more advantageous position now compared with Eurozone, where inflation amounts about 2%. Price stability, according to the monetary politician, does not give rise to complaints. 

As it became known earlier, index of expectation ZEW in Switzerland increased to -17.2 points in February against the level of -18.4 points in January. In general, the situation in the country’s economy remains unchanged. It became known earlier that CPI increased by 0.4% m/m, +0.3% y/y in January, against the forecast of -0.2% m/m, +0.6% y/y; consumer confidence SECO in January: 10 against preliminary level of 7. Inflation rate indicates slowdown of the recovery process in Swiss economy and high rate of the Franc is also a party at fault.

Statistics on Swiss unemployment rate released earlier showed that the rate remained at the level of 3.5% in January. According to the estimates of the State Secretariat of Economic Affairs (SECO), unadjusted unemployment rate amounted to 3.8% last month. Thus, a number of unemployed in Switzerland totaled to 136.542 thousand (earlier: 140.090 thousand). According to UBS study the level of private consumption increased to the level of 1.7% in January, which above the average annual level. 

 

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