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At the Forex currency market Swiss Franc rate is traded downwardon Monday, keeping up the trend, charted out last week

Forex forecast: MACD indicator for the pairGBP/USD is in the positive area and started to go down, giving a sell signal;volumes remain above average. Stochastic Oscillator is growing in the neutralzone, maintaining a buy signal.

Forex recommendations: in case of break downat the level of 0.9220, the pair USD/CHF will go to 0.9240 and 0.9250.

Economic situation in Switzerland has notchanged significantly this morning.

As the end of last week Switzerland roseinterest of players to a block of statistics. Thus, retail sales decreased by0.2% y/y in October against a decline of 1.4% y/y earlier. GDP 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). ). Thedata was positive on quarterly basis indicating that efforts of the CentralBank to curb the rates of the Franc are effective. Last Thursday Swissgovernment stated that they are prepared to lower interest rate to negativelevels in order to use all available means to fight against the rise of Franc.At the same time, politicians noted that the most effective tools are in thehands of SNB.

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

Unemployment rate in Switzerland rose to2.9%, which had been an expected rise from 2.8%. It became known last week thattrade balance in Switzerland amounted to 2.15 billion francs in October againstthe forecast of 2.06 billion francs. The data is good, considering global slumpin demand and expensive Franc.

Representative of SNB Mr. Jordan reportedearlier that Swiss regulator does not need external guidance on monetarypolicy, as it is an independent institution and does not intend to receiveinstructions from business groups and politicians. SNB will continue to takeappropriate measures if it is required considering the state of economicforecasts and deflation. According to him, slowdown in economic growth inSwitzerland, which had taken place earlier, was caused by high exchange rate ofSwiss Franc.Trade surplus in Switzerland amounted to 1850 billion SHF in September. Itbecame known earlier that consumption indicator UBS in Switzerland rose to 0.84points in September against the revised level of 0.80 points in August. Taking into account that the data reflects thefigures of the months when SNB has fixed the rate of the Franc, the index looksvery much positive.

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