CHF: Swiss Franc grows, trying to go out of the range

At the Forex currency market Swiss Franc rate has resumed ascending movement again on Friday.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF, it approached the signal line very closely, and is moving along it, not giving a clear signal. Stochastic oscillator is giving a pair buy signal today, being in the neutral zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9700 the pair USD/CHF will go to 0.9760, which will become the local highs. If upward breakdown will not take place, the pair will continue to consolidate close to the current levels, remaining in the range of 0.9525-0.9685.

The head of Swiss National Bank Mr. Hildebrand said yesterday, that in his opinion, stability of Eurozone is the key factor of economic growth in Switzerland. He also expressed confidence in reverting of the region to quiet times.

In addition, the regulator stressed once again that strong Franc is a hard burden for the local economy which is especially evident in some sectors. However, in general, the macro-economic background demonstrates a good atmosphere in the country.

This week the CHF issue was brought up more than once: earlier representatives of the Swiss National Bank had raised the issue of CHF. Finance Minister of the country stated that there are no signs of speculation in the market which can shift the Franc; while economy in the country grows and there are no signs of crisis. It was also stressed that an issue of expensive Franc will become a subject of discussion in the next couple of weeks.

Swiss authorities also pinpointed the issue of value of the national currency, government of the country announced that the SNB should influence on the rate of the Franc, working with it directly. This increases the possibility of the regulator’s unilateral intervention in the market. Note that Franc has a real detrimental effect on Swiss economy, exerting pressure on the process of its recovery. This has been confirmed by Swiss authorities who reminded that strong Franc complicates correction of the national economy.

However, probability of currency intervention is estimated as low so far.