CHF: Growth of Swiss Franc has slowed down

At the Forex currency market on Friday Swiss Franc rate is being corrected on Thursday after steady two -day growth.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF, is going up and is giving a weak buy signal; volumes are below average. Stochastic Oscillator is going down in the neutral zone and is giving a pair sell signal.

Forex recommendations: in case of breakdown at the level of 0.8400, the pair USD/CHF will go to 0.8380 and 0.8350.

If downward breakdown does not take place, the pair will consolidate close to the current levels.Representative of the Swiss government noted yesterday that national economy is still in good shape despite strengthening of the national currency. As the same time, first signs of cooling in the export sector could be seen and if these symptoms will continue to develop, it will have a negative impact on the economy as a whole.

According to authorities, Swiss National Bank is solely responsible for the course of monetary policy and will likely to adopt new effective measures to achieve price stability soon.Statistics released earlier showed that producer prices and prices for imports decreased by 0.2% (-0.4% y/y) in May against the forecast of growth by 0.1% m/m. It became known earlier that unemployment rate in Switzerland fell to 2.9% in May against the level of 3.1% in April and the forecast of 3.0%.

At  the meeting last week Swiss National Bank  left three- month Libor rate in the previous range of 0-0,75% with a tendency  to 0.25%. At the same time, the SNB said that GDP growth would amount to 2% this year. Inflation in 2011 is predicted at around +0.9% (previously +0.8%), in 2012: +1.0% (previously 1.15), in 1013: +1.7% (previously +2.0%).

As the data released last week showed consumption indicator UBS in Switzerland rose by 1.91 points in May against the growth of 1.57 points in April.GDP in Switzerland has slowed down growth rate in QI this year, increasing by 0.3% on quarterly basis (+2.4% y/y) against the rise of 0.8% last quarter and the forecast of growth of 0.6 %.

The data released earlier showed that CPI in Switzerland remained unchanged on monthly basis (+0.4% y/y) in May against the forecast of decline by 0.1% m/m (+0.3% y/y).The data on inflation in Switzerland in June will become known today. Unemployment rate in June will be made public on Friday.

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