CHF: Growth of Swiss Franc in the morning is considered as a rebound

Swiss Franc rate is traded upward at the Forex currency market on Monday morning. However considering the global actual situation, such growth should be regarded as a rebound following the previous fall.

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 is giving a similar signal today, being in the neutral zone.

Forex recommendations: traders’ targets today will be the levels of 0.9920 and 0.9870.

Economists’ belief, that economic growth in Switzerland will slow down in QIII continue to find confirmations. Thus, KOF indicator released on Friday showed the decline to 2.12 in November against the previous level of 2.16.

Although indicator of the business expectations is still in the positive area, its decline after summer’s stabilization seems alarming. Consumer spending remains to be a strong factor that can overbalance this indicator.

Philipp Hilderbrand, the head of Swiss National Bank, said earlier that his belief in the stability of Eurozone remains unchanged. In his view, European leaders are able to adopt measures to restore financial stability which, in its turn, will reduce pressure on the CHF“. “I am convinced that European Union and Eurozone will cope with challenges. Stability of the Eurozone is an important factor which affects the Franc and economy.” –he emphasized in his speech.  According to the data released on Thursday, employment in Switzerland excluding agricultural sector increased to 4.08 million people in QIII against the previous level of 3.97 million people. The data is positive for the domestic economy.

The next meeting of the National bank of Switzerland is scheduled for 16 December. We will remind that interest rate in Switzerland remains unchanged for 19 months already at the level of 0.25% per annum. The head of the Swiss national Bank Mr. Hilderbrand is convinced that current level of the interest rate is acceptable and he noted that the situation now is ideal for the rise of the risks.

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