CHF: Swiss Franc consolidates steadily

At the Forex currency market Swiss Franc rate continues to recover steadily on Friday. Today’s inflation data also supported positive trend.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF however it moves along signal line not giving a clear signal. Stochastic oscillator gives a pair sell signal, being in the neutral zone.

Forex recommendations: if the current external background is maintained and in caste of breakdown at the level of 0.9910 the pair will go to 0.9850 and 0.9820.

The following Swiss data was released today:
– CPI in November: +0.2% m/m, (+0.2% y/y) against the forecast +0.1% m/m, (+0.1% y/y).
Inflation growth is moderate in Switzerland; however, at the moment it is a positive factor for the economy which indicates stability. This data will support CHF in short term.

It became known yesterday 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.
Sovereign risk in Europe has more negative sides than positive ones for the CHF at the moment, as investors have not figured out completely the future expectations. In general, November was quite favourable for Swiss currency and it increased by 3.25%. CHF rose by 3.25%.  According to the data released earlier, 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.

It became known on Tuesday that consumption indicator rose to 1.716 in October against the preliminary estimation of 1.695 in Switzerland.
The next meeting of SNB is scheduled for 16 December. We would like to recall that Interest rate in Switzerland has remained unchanged for 19 months already, at the level of 0.25% per annum.

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