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At the Forex currency market Swiss Franc rate continues to rise in price on Tuesday, regaining   mostly from domestic news.

Forex forecast: MACD indicator for the pair USD/CHF is in the positive area and is gradually going down while volumes remain average, however the movement is very slow, due to which a sell signal is limited. Stochastic Oscillator started to go out of the overbought zone, shaping a sell signal.

Forex recommendations: in case of breakdown at the level of 0.9470, the pair USD/CHF will go to 0.9460 and 0.9450.

News of the week for Switzerland is resignation of the head of SNB, Phillip Hildebrand. The news became known last night, after which ex-governor of the regulator stated that SNB would continue to protect the level of 1.20 in pair EUR/Franc, as it is of strategic importance. The name of successor is still unknown and it is also not clear if new governor of the Bank will adhere to the same policy as his colleague in monetary issues.

Meanwhile, Franc has strengthened in response to the news, but moderately: investors are clearly afraid of new interventions from CNB, as no one mentioned about changes in the fiscal policy.

It became known yesterday that unemployment rate in Switzerland increased to 3.3% in December against expectations of 3.2% and the level of 3.1% in November. Obviously, slowdown in the national economy still goes on.

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

Three-month Libor rate was left in the range of 0-0.25%, closer to zero; the Bank did not change pegging level of Franc to Euro, maintaining the actual level of 1.20. 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.

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.

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