CHF: Further movement of Swiss Franc is yet undetermined

At the Forex currency market Swiss franc is traded without specific direction on Monday.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF however it goes down, giving grounds for a pair sell signal. Stochastic Oscillator has not identified a clear signal, being in the neutral zone. Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 1.0000 the pair will go to 1.0040 and 1.0090. If the level of   0.9860 is exceeded, traders' targets will become the levels of 0.9820 and 0.9780. All investors' attention last week and today was focused on the Irish situation; the decision to provide assistance to the banking sector of the country has already been taken. Further statements will show investors' attitude to risk, which can affect dynamics of the currency market.

The situation in Switzerland still remains almost unchanged. We will reiterate our opinion that while Franc is far from its highs, the SNB will not need to make rate increase decisions. Representative of Swiss National Bank Mr. Jordan noted not once that prolonged retention of the interest rates at the low level can cause additional risks for the economy. SNB intends to closely monitor the dynamics of the real estate sector. We would also remind that Dantin noted earlier that crisis in the developing countries has slowed down and almost finished and economies of Japan and the West are recovering however recovery process is very unstable.

In his opinion estimation of the Swiss GDP for September is justified. Dantin noted that strong Franc and slow pace of the recovery in the world finance system have a negative impact on Switzerland. As it became known earlier Swiss surplus of trade balance increased to 2.102 billion francs in October while a month earlier the index amounted to 1.690 billion francs.

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