CHF: Swiss Franc grows slightly on Tuesday

At the Forex currency market Swiss Franc rate grows after three days of minor correction. In general, the Franc looks stable.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and continues to go down, giving a pair sell signal. Stochastic Oscillator ascends in the neutral zone, giving a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9050 the pair will go to 0.9060 and 0.9090. If the level of 0.9020 is broken down, traders’ targets will become the levels of 0.9010 and 0.8980.

Data on the trade balance in Switzerland for February will become known on Tuesday, in general, macro-economic background will remain quiet for the country this week.

Statistics released earlier showed that volume of industrial output in Switzerland increased by 6.1% y/y in QIV. Before that it became known that index of economic expectations ZEW in Switzerland increased to -13.5 points in March against the previous level of -17.2 points. It is a favourable indication for the local economy.

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.

The 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.

In addition, unemployment rate in Switzerland reduced to 3.6% m/m in February against the previous rate of 3.8% m/m. In general it is a positive indicator for Swiss economy, which indicates that economic system of the country is being recovering steadily, despite high rate of the national currency.

 

[More]