CHF: Swiss Franc goes makes no headway

At the Forex currency market Swiss Franc rate makes no headway on Monday awaiting new catalysts for movement.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF however it goes down, giving grounds for a pair sell signal. Stochastic Oscillator has entered oversold area today and is ready to form an antipodal signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9775 the pair will go to 0.9820 and 0.9860. If the level of 0.9730 is exceeded, traders’ targets will be the levels of 0.9680 and 0.0650.

Swiss Franc was fortunate last week –three days of powerful growth of the Franc has led the pair to the high level of 0.9710 – from where a lower border of the medium channel of 0.9640, is round the corner,  and then a significant rise can start for the pair.

Inflation in Switzerland demonstrates growth (CPI in November: +0.2% m/m, (+0.2% y/y) against the forecast +0.1% m/m, (+0.1% y/y)- it is moderate at the moment however it is a positive factor for the economy which indicates stability. This data will support CHF in short term.
It became known earlier that GDP in Switzerland rose by 0.7% q/q (+3.0% y/y) in QIII against the forecast of +0.5% q/q (+3.1% y/y).  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 the 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. 
 

 

[More]