CHF: Swiss Franc continues to attract buyers

At the Forex currency market Swiss Franc rate continues to grow in pairing with the USD on Tuesday.              

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and it goes down, confirming a previous sell signal for the pair. Stochastic Oscillator is giving a pair buy signal, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9572 the pair will go to 0.9595 and 0.9640. Otherwise, the pair will consolidate close to the current levels. Worth reminding that the market is thin in advance of the New Year celebrations.

As it became known on Tuesday, an indicator of consumption in Switzerland decreased to 1.630 in November as per UBS estimates against the level of 1.708 in October.

In other respects the economic situation in Switzerland has remained unchanged.

At the meeting which was held last week the Swiss National Bank decided to maintain three -month rate Libor in the previous target range of 0-0.75, as expected by the market. Index was revised in March 2009 last time when it was reduced by 0.25%.

According to KOF estimates (Swiss institute of research on economic cycles) Swiss Franc will retain the status of a protective asset and a refuge as long as the period of tension will be maintained in Europe.

KOF has also revised its forecast for GDP growth upward in 2011; is it projected that Swiss economy will increase by 1.9% in 2011 against the previous forecast of 1.8%. In 1012 national economy is expected to rise by 2%.

Market is still thin; currencies movement is hardly predictable, therefore, it is wise to exercise caution.

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