Forex Blog
Blog-FX.Com

• 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: the rise of Swiss Franc continues

At the Forex currency market Swiss Franc rate continues to rise on Wednesday.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF, however it is prepared to intersect signal line from top to bottom, giving ground for a pair sell signal. Stochastic oscillator remains in the oversold zone on Wednesday, giving a pair sell signal.

Forex recommendations: in case of breakdown at the level of 0.9330 the pair will go to 0.9300 and 0.9280.

The data released yesterday showed that indicator of consumption UBS in Switzerland fell to the level of 1.676 points (-0.15 points) in January amid decreasing sales in retail sector due to weak demand for new cars. However the indicator still remains above the key level of 1.5, which ensures favourable prospects.

In addition, import prices in Switzerland increased by 9.8% y/y in January; export rose by 15.5% y/y.

It is a factor of trade balance (index increased to the level of 1.96 billion euro in January against the growth to 1.26 billion euro earlier) 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.

 

[More]
Tags:
Tags Cloud: drop usd/cad limited forexm eur participants gullible anticipate window pairs rba