CHF: Swiss Franc changed its mind about the decline

At the Forex currency market Swiss Franc rate continues to grow on Tuesday.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is moving along the signal line, preventing from formation of a clear signal. Stochastic oscillator remains in the overbought zone, which gives grounds for the trend reversal. 

Forex recommendations:  considering current sentiment in the market we can expect the rise in bearish sentiments for the pair in case of breakdown at the level of 0.9525, after that, traders’ targets will be the levels of 0.9500 ? 0.9460.

Statistics on Swiss unemployment rate released today showed that the rate remained at the level of 3.5%. According to the estimates of the State Secretariat of Economic Affairs (SECO), unadjusted unemployment rate amounted to 3.8% last month. Thus, a number of unemployed in Switzerland totaled to 136.542 thousand (earlier: 140.090 thousand) 

According to the study of UBS, level of private consumption increased to the level of 1.7% in January, which above the average annual level.

Statistics of last week looked optimistic: levels of exports in the country increased by 10.9% y/y in December, the index rose mostly due to the demand for watches (export of watches in December: +25.5%, to 1.53 billion francs). At the same time trade surplus (supported by the data mentioned above) rose to 1.3 billion francs in December and levels of import increased by 10.5% y/y (14.2 billion francs).

However the data released before that shows that not everything is that good in the economy: leading indicator according to the Research Institute KOF fell to the level of 2.10 against the level of 2.11 in December, which became the fifth consecutive fact of reduction of the indicator. However, the data was still above than the forecast of economists (2.05). Retail sales in December declined by0.4% y/y against +1.8% for the previous period; PMI in the manufacturing sector in January was at the level of 60.5 against 61.2 for the previous period.

The data on the inflation levels in January will be released this Thursday (forecast:-0.1% m/m).

 

 

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