CHF: Swiss Franc continues trading in the range
At the Forex currency market Swiss Franc rate continues trading in the previous range on Thursday despite today’s statistics and positive external background.
Forex forecast: MACD indicator is in the positive area for the pair USD/CHF, however it continues to move along the signal line not giving a clear signal. Stochastic Oscillator has merged with the signal line and did not form a signal.
Forex recommendations: off the market.
Feasible event scenario at Forex: in case of breakdown at the level of 1.0065 the pair will go to 1.0100 and 1.0130. If the level of 0.9970 is exceeded, traders’ targets will be the levels of 0.9925 and 0.9870.
The following Swiss data was released today:
– GDP in QIII: +0.7% q/q (+3.0% y/y) against the forecast of +0.5% q/q (+3.1% y/y);
– Revised real volume of retail sales in October: +3% y/y, against +4% in September.
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 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 the National bank of Switzerland is scheduled for 16 December. We will remind that interest rate in Switzerland has remained 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.
