CHF: Swiss Franc is under pressure again
Swiss Franc rate is under pressure again today at the Forex currency market.
Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is still growing, confirming a previous buy signal for the pair. Stochastic Oscillator remains in the overbought zone today, giving a similar signal.
Forex recommendations: if bullish sentiment will be maintained for the pair, buyers’ targets will become the levels of 0.9550 and 0.9520.
Unemployment rate in Switzerland increased to 3.8% in December against the forecast of 3.7% and the previous value of 3.7%. It is a negative indication for the Franc at the moment; however attention of the traders is focused on the Eurozone.
It became known earlier that consumer price index in Switzerland remained unchanged on monthly basis in December, demonstrating the rise by 0.5% on annual basis; while analytics had expected the growth by 0.2% m/m and +0.3% y/y. It became known on Friday that Swiss national Bank refused to accept Portuguese state bonds as collateral for the repo transactions –earlier the same action has been taken for Irish securities. Thus, SNB abandoned unnecessary risks, becoming the first regulator who acknowledged big problems of sovereign debts in the peripheral countries of Eurozone.
According to KOF estimates (Swiss institute of research on economic cycles) Swiss Franc will retain the status of a protective asset and a refuge as long as the period of tension will be maintained in Europe.
KOF has also revised its forecast for GDP growth upward in 2011; is it projected that Swiss economy will increase by 1.9% in 2011 against the previous forecast of 1.8%. In 1012 national economy is expected to rise by 2%.
KOF has also revised its forecast for GDP growth upward in 2011; is it projected that Swiss economy will increase by 1.9% in 2011 against the previous forecast of 1.8%. In 1012 national economy is expected to rise by 2%.
Interest rate in Switzerland (Libor) is currently in the target level of 0-0.75%; the next meeting of the Swiss National Bank is scheduled for 17 March. Subsequent meeting of 2011 will be held on 16 June, 15 September, 15 December.
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