CHF: Swiss Franc moves away from historical highs

At the Forex currency market Swiss Franc rate is being corrected on Friday following the results of B7 and drop of investors’ interest in the safe harbor currencies.

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 today and is starting to form a pair buy signal today.

Forex recommendations: in case of breakdown at the level of 0.9065 the pair will go to 0.9090 and 0.9110.

Swiss National Bank adopted measures of verbal intervention against the Franc yesterday: representatives of the SNB said following the meeting that strong currency is a hard burden for the economy and its inflated price will trigger a slowdown of economic growth – largely, due to the decrease of the export volumes.

The level of three-month LIBOR rate was left unchanged, at the 0.25%, as per the forecast.

According to the data released on Thursday volume of industrial output in Switzerland increased by 6.1% y/y in QIV.

It became known earlier that index of economic expectations ZEW in Switzerland increased to -13.5 points in March against the previous value of -17.2 points. It is a favourable indication for the national economy.

Statistics of the last week demonstrated that 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 has been increasing 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 earlier, 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.

 

[More]