CHF: Swiss Franc continues to be in demand among investors

At the Forex currency market Swiss Franc rate continues to rise on Wednesday, however volume of its purchase declines.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is going 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 0.9540 the pair will go to 0.9580 and 0.9610. In case of breakdown at the level of 0.9500, traders’ target will be the levels of 0.9480 and 0.9450.

While the market is still thin currencies movement can be unpredictable, therefore, it is wise to exercise caution.

This afternoon the data on the leading indicators index KOF in Switzerland for December is scheduled for publication (13.30 Moscow time).
In general, the economic situation in Switzerland remains unchanged in advance of the New Year Holidays.
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%.

At the meeting of the regulator which was held earlier it was 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%.

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