CHF: Swiss Franc is in disfavour

At the Forex currency marketSwiss Franc rate continues to weaken on Friday morning, as investors do notshow great interest in safe currencies.

Forex forecast: MACD indicatoris in the negative area for the pair USD/CHF, is going up and is giving a buysignal; volumes are below average. Stochastic Oscillator is going up in theneutral zone and is giving a similar signal.

Forex recommendations: in caseof breakdown at the level of 0.8460, the pair USD/CHF will go to 0.8380 and0.8350. If upward breakdown does not take place, the pair will consolidateclose to the current levels.

On Friday, the data on Swissunemployment rate in June will become known

As it was known yesterday, CPIin Switzerland fell by 0.2% m/m (+0.6% y/y) in June, while the forecast hadbeen +0.7% y/y.

Statistics released earliershowed that producer prices and prices for imports decreased by 0.2% (-0.4%y/y) in May against the forecast of growth by 0.1% m/m. It became known earlierthat unemployment rate in Switzerland fell to 2.9% in May against the level of3.1% in April and the forecast of 3.0%. At the meeting last week SwissNational Bank left three- month Libor rate in the previous range of 0-0,75%with a tendency to 0.25%. At the same time, the SNB said that GDP growth wouldamount to 2% this year. Inflation in 2011 is predicted at around +0.9%(previously +0.8%), in 2012: +1.0% (previously 1.15), in 1013: +1.7%(previously +2.0%).

The data released earliershowed that consumption indicator UBS in Switzerland rose by 1.91 points in Mayagainst the growth of 1.57 points in April.

Representative of Swissgovernment noted the day before yesterday that national economy is still ingood shape despite strengthening of the national currency. As the same time,first signs of cooling in the export sector could be seen and if these symptomswill continue to develop, it will have a negative impact on the economy as awhole.

According to authorities, SwissNational Bank is solely responsible for the course of monetary policy and willlikely to adopt new effective measures to achieve price stability soon.