CHF: Swiss Franc is moving away from historic highs

At the Forex currency market on Wednesday morning Swiss Franc rate continues to move away from historic highs, which it had reached last week, due to the relative lull in the market.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF, and is going down sluggishly, giving a sell signal. Stochastic Oscillator is making reversal in the oversold zone, shaping a weak buy signal.

Forex recommendations: in case of breakdown at the level of 0.8250, the pair USD/CHF will go to 0.8270 and 0.8290.

Three- month Libor rate remains in the previous range of 0-0,75% with a tendency  to 0.25%. At the same time, the SNB said that GDP growth would amount 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%).

Statistics released earlier showed 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. In June the index decreased by 0.5% m/m (-0.4% y/y) against the forecast of reduction by 0.3% m/m.According to authorities, Swiss National Bank is solely responsible for the course of monetary policy and in the coming future it is likely to adopt new, effective measures to achieve price stability.

Representatives of Swiss government noted earlier that national economy is still in good shape despite strengthening of the national currency. As the same time, first signs of cooling in the export sector could be observed and if these symptoms continue to develop, it will have a negative impact on the economy as a whole.

According to the representative of Swiss National Bank Mr. Jordan, Switzerland went through the crisis easier than other countries largely, due to its monetary policy and if the country will return to deflation, the CNB knows how to fight it off. Jordan is concerned, however about recent dynamics of the EUR/CHF, saying that risks will increase when Italy joins the list of the EU problematic countries. Earlier, rating agency Fitch confirmed the ranking of Switzerland at the level of AAA, with a “stable” forecast.  

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