CHF: Swiss Franc moves away from highs

Swiss Franc rate moves away from highs at the Forex currency market on Monday, while the USD regains the losses amid interest to the American currency.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and goes down, giving a pair sell signal. Stochastic Oscillator tends to come out of the oversold zone, forming a pair buy signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.8700 the pair will go to 0.8915 and 0.8930. If upward breakdown does not take place the pair will consolidate close to the current levels.

The head of the National bank of Switzerland, Mr. Hildebrand noted that strong and expensive Franc undermines exports and harms tourism industry and negative impact of the CHF can be stronger than predicted. “We intend to take any measures to achieve price stability” stressed monetary politician.

According to him, downside risks to recovery are still preserved, although economy demonstrates more steady growth rate than previously expected.
Statement made by Hildebrand that long term expansionary monetary policy constitutes a menace to some industrial sector is worthy of being noted.
It became known earlier that consumption indicator UBS in Switzerland rose to 1.660 points in March against the revised level of 1.453 points in February; while volume of export in Switzerland fell by 4.8% m/m in March against the level of +3.6% m/m in February. Franc has ignored this statistics.
Real level of retail sales in Switzerland increased by 1.5% m/m in February against the decline by 2.4% m/m in January; level of CPI in Switzerland rose by 0.6% m/m (+1,0% y/y) in March against the forecast of growth by 0.2% m/m. It is an ambiguous factor for Swiss economy as on the one hand the economy strengthens and on the other hand it suffers from significant inflationary pressure.

Trade balance in Switzerland decreased to 1.09 billion francs in March against the revised value of 2.38 billion in February; although economists had expected the reduction to 2.1 billion francs, supporters of the Swiss Franc were not deeply vexed. 

 

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