CHF: Franc continues to grow on Friday; however the week is coming to an end rather unsuccessfully

Swiss Franc rate is traded upward at the Forex currency market on Friday, continuing the trend of the last two trading days. However, the week as a whole ends up with low results for the CHF.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF; however it goes down, confirming a previous sell signal for the pair. Stochastic oscillator is giving a similar signal today, being in the neutral zone.

Forex recommendations: if current external background is maintained and in case of breakdown at the level of 0.9810 traders’ targets will become the levels of 0.9775 and 0.9730.

The situation in Swiss economy has not changed fundamentally so far.

Unemployment rate remained at the level of 3.6% in November which agreed with the forecast. Inflation in Switzerland demonstrates growth (CPI in November: +0.2% m/m, (+0.2% y/y) against the forecast +0.1% m/m, (+0.1% y/y)- it is moderate at the moment however it is a positive factor for the economy which indicates stability. This data will support CHF in short term.

It became known earlier that GDP in Switzerland rose by 0.7% q/q (+3.0% y/y) in QIII against the forecast of +0.5% q/q (+3.1% y/y).  The fact that Swiss economy is growing above expectations has confirmed our theory about stability in the country. It is clear that European problems will have an impact there, as well as they will affect Great Britain for example; however situation in Swiss economy seems steadier.

The next meeting of the National Bank of Switzerland is scheduled for 16 December; the quarterly level of interest rate is now in the range of 0-0.75%. The index was revised in March 2009 last time when it was reduced by 0.25%. 
 

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