CHF: Swiss Franc reaches new historic highs
At the Forex currency market Swiss Franc rate has reached new historic highs of 0.8326 at the beginning of the week, while the USD remains weak.
Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and goes down, forming a pair sell signal; while volumes are increasing. Stochastic Oscillator tends to come out of the oversold zone; however it is keeping such position for a few days already, maintaining a pair buy signal.
Forex recommendations: in case of breakdown at the level of 0.8340, the pair USD/CHF will go to 0.8326 and to new lows of 0.8300. If downward breakdown does not take place, the pair will consolidate close to the current levels.
The economic situation in Switzerland remains almost unchanged, because the market was closed due to day off in the country.
Mr. Danten, a board member of the Swiss national Bank, said earlier, commenting statistics that economy of Switzerland is developing well, which is demonstrated by strong Swiss Franc.
It became known earlier that the level of trade balance in Switzerland rose by 1.52 billion in April against the rise of 1.0 billion in March. In addition, exports in Switzerland increased by 7.9% in April against the fall by 3.1% in March.
Index of leading indicators KOF in Switzerland rose to 2.30 points in May against the forecast of growth by 2.22 points.
Julius Baer Group believes that it is not clear yet whether Swiss economy requires the increase in the interest rate or not: “any rise will have an impact on the economy as a whole for a year”. However it is quite possible that local economy and its recovery process are strong enough to cope with the interest rate rise to 1%-1.5%.
As it was made public earlier, index of PMI SVME in Switzerland increased to 59.2 points against the forecast of 57.5 points. It proves once again that national economy has learnt to be effective even in circumstances where national currency is expensive.
GDP in Switzerland 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 %.
According to estimates of the SNB, the main activator for economic growth in Switzerland is still national consumer demand, triggered by the rise in the demand for houses and health care expenditure, as well as high level of export.
