CHF: Swiss Franc firmly secured a status of protective asset

At the Forex currency market Swiss Franc continues to consolidate on Thursday.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and it continues to descend, confirming a pair sell signal. Stochastic oscillator is approaching oversold zone today and does not give a clear signal.

Forex recommendations: if current level of external environment will be maintained, traders’ targets will be the levels of 0.9450 ? 0.9410 today.
Yesterday Swiss Finance Minister Mrs Widmer-Schlumpf noted that Swiss National Bank has no plans to abrupt collapse of the Euro in pairing with the USD. Therefore, the politician denied rumours that have appeared due to the publication in Sonntag regarding secret talks of the head of the CHB Hildebrand with the Swiss authorities about the prospects of decline of the Unified European currency to the rate of 0.50 francs.

Meanwhile, domestic situation in Switzerland remains unchanged. Debates at the market regarding how soon the SNB will start currency intervention, has intensified, because high rate of Swiss Franc seriously obstructs country’s economic recovery. 

At the meeting which was held last week, Swiss National Bank made a predictable decision to maintain three months rate Libor in the previous target range of 0-0.75. This decision of the Bank was 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%. 

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