CHF: Swiss Franc is traded with no clear direction

At the Forex currency market Swiss Franc rate come to the end of the week not having a clear trend on Friday morning, starting from Monday the pair USD/CHF is being traded in compliance with external background, Franc acted as a protective currency, however it bounced each time when external background became stable.

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 going down in the neutral zone, giving a similar signal.

Forex recommendations: in case of breakdown at the level of 0.8150, the pair USD/CHF will go to 0.8130 and 0.8110. 

The data released yesterday showed that trade balance in Switzerland totaled +1.74 billion francs in June against preliminary revised level of +3.25 billion francs.In addition, it became known that economic expectation index ZEW amounted to -58.9 points in July against the level of -24.3 points in June.

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. Earlier, rating agency Fitch confirmed the ranking of Switzerland at the level of AAA, with a “stable” forecast.

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. 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%).According to authorities’ evaluation, Swiss National Bank is solely responsible for the course of monetary policy and in the nearest future it is likely to adopt new, effective measures to achieve price stability.

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