CHF: Swiss Franc maintains its positions in the range

At the Forex currency market Swiss Franc rate declines on Thursday, while remaining in the range of 0.9259-0.9370.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is going down, giving a pair sell signal. Stochastic Oscillator has come close to the overbought zone, confirming a pair buy signal.

Forex recommendations: if bullish sentiments are maintained and in case of breakdown at the level of 0.9330, buyers’ targets will be the levels of 0.9375 and 0.9430. If an upward breakdown does not take place, the pair will continue to consolidate in the specified channel. 

Ax the data released yesterday showed level of CPI in Switzerland increased by 0.4% m/m (+0.5% y/y) in February against the forecast of growth by 0.3% m/m.

Thus, inflation in Switzerland increases slightly so far, which on one hand, indicates economic recovery in the country, and on the other hand, does not give rise to discussions of the interest rate revision.

According to the data released on Tuesday, unemployment rate in Switzerland reduced to 3.6% m/m in February against the previous rate of 3.8% m/m.

In general it is a positive indicator for Swiss economy, which indicates that economic system of the country is being recovering steadily, despite high rate of the national currency.

Statistics released earlier showed that showed that employment rate in Switzerland declined to the level of 4.085 billion in QIV against expectations of growth to 4.086 billion; however Franc ignored this information. The data released earlier showed that indicator of consumption UBS in Switzerland fell to the level of 1.676 points (-0.15 points) in January amid decreasing sales in retail sector due to the low demand for new cars. However the indicator still remains above the key level of 1.5, which ensures favorable prospects.

Level of retail sales in Switzerland declined by 2.6% y/y in January against the fall by 0.8% in December; however external background still remains the main driver of the Franc’s movement, as well as possible withdrawal of the players from risks. It is the factor of trade balance (index rose to the level of 1.96 billion euro in January against the growth to 1.26 billion euro earlier) that helps the CHF to be considered a stable currency, since the country does not require external borrowings.

 

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