CHF: Swiss Franc once again demonstrates strength and growth

At the Forex currency market on Friday Swiss Franc rate continues to grow on Wednesday, keeping on the path, charted yesterday. The Franc is in demand again as a protective currency while external background remains ambiguous.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF, however is going up and is giving a weak buy signal; volumes are below average.. Stochastic Oscillator has pushed away from the oversold zone and is giving a sell signal, going down.

Forex recommendations: in case of breakdown at the level of 0.8400, the pair USD/CHF will go to 0.8380 and 0.8350.

If downward breakdown does not take place, the pair will consolidate close to the current levels.The data on inflation in Switzerland in June will become known this Thursday. Unemployment rate in June will be made public on Friday.Economic situation in Switzerland remains almost unchanged this morning.

Statistics released earlier showed that producer prices and prices for imports decreased by 0.2% (-0.4% y/y) in May against the forecast of growth by 0.1% m/m. It became known earlier that unemployment rate in Switzerland fell to 2.9% in May against the level of 3.1% in April and the forecast of 3.0%. At  the meeting last week Swiss National Bank  left three- month Libor rate 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%).As the data released last week showed consumption indicator UBS in Switzerland rose by 1.91 points in May against the growth of 1.57 points in April.

GDP in Switzerland has slowed down growth rate in QI this year, increasing by 0.3% on quarterly basis (+2.4% y/y) against the rise of 0.8% last quarter and the forecast of growth of 0.6 %. The data released earlier showed that CPI in Switzerland remained unchanged on monthly basis (+0.4% y/y) in May against the forecast of decline by 0.1% m/m (+0.3% y/y).As it became known last Friday index of business activity PMI SVME in Switzerland decreased to 53.4 points in June against the forecast of 57.8 points and the previous level of 59.2 points. 

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