CHF: Swiss Franc decides on its direction

At the Forex currency market Swiss Franc rate stands still amid both mixed external background and differently directed technical signals.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and continues to move along the signal line, not giving a pair any signal. Stochastic Oscillator is in the overbought zone today, maintaining a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9230 the pair will go to 0.9250 and 0.9270. If the level of 0.200 is exceeded, the target of decline will be the levels of 0.9180 and 0.9160.

Important statistics presenting fresh information about the state of national economy will be released this week in Switzerland. Data on the Leading indicators KOF for March will become known on Wednesday, Retail sales and PMI are to come out on Friday.

Previously Swiss National Bank started to indicate that intervention of possible: representative of the regulator Mr. Dantin said yesterday that the Bank is able to ensure price stability even amid excess liquidity. In addition the politician noted that the cost of the intervention at the currency market will be determined by the information pressure.

Bulls took the hint very well, which has been demonstrated by the current dynamics of the pair.

Swiss National Bank adopted measures of verbal intervention against the Franc last week: representatives of the SNB said following the meeting that strong currency is a hard burden for the economy and its inflated price will trigger a slowdown of  economic growth – largely, due to the decrease of the export volumes.

Level of three-month LIBOR rate was left unchanged, at the 0.25%, as expected.
Statistics previously demonstrated that level of CPI in Switzerland increased by 0.4% m/m (+0.5% y/y) in February against the forecast of growth by 0.3% m/m. Thus, inflation in Switzerland has been increasing slightly so far, which on one hand, indicates economic recovery in the country and on the other hand does not give rise to discussions of the interest rate revision.

 

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