CHF: Swiss Franc recovers from decline however it is not yet a trend reverse

At the Forex currency market Swiss Franc rate is traded upward on Thursday, however the currency still follows after external background, where the
optimism today is based on the expectations of the Irish news. The pair USD/CHF seems overbought, therefore its decline today can be considered as technical correction. We can speak about reverse trend if the pair approaches to  0.9770-0.9750.
 

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF; however is started to decline, giving a pair sell signal. Stochastic
Oscillator is giving a similar signal, being in the neutral zone.

Forex recommendations: the target of the pair's USD/CHF corrective decline will be the levels of 0.9820 and 0.9770.
The following Swiss data was released today:
- Foreign trade surplus in October is 2.1 billion francs;
- Imports in October: 5.5% y/y to 14.6 billion francs;
- Exports in October: +6.8 y/y to 16.7 billion francs.
 

Despite the Franc's previous growth, demand for the goods, manufactured in Switzerland is still very high. Swiss data, published this week was not too positive so far: index of the import prices reduced by 0.9% m/m (+0.2% y/y), producer prices index dropped by 0.2% m/m (+0.4% y/y) last month. Besides, producer price index and index of import prices (total) subsided by 0.4% m/m.

While Franc is far from its highs, the SNB will not need to make decisions on the rate increase. Representative of Swiss National Bank Mr. Jordan noted not once that prolonged retention of the interest rates at the low level can cause additional risks for the economy. SNB intends to closely monitor the dynamics of the real estate sector. We would remind that Dantin noted earlier that crisis in the developing countries has slowed down and almost
finished and economies of Japan and the West are recovering however recovery is very unstable. In his opinion estimation of the Swiss GDP for September is justified. Dantin noted that strong Franc and slow pace of the recovery in the world finance system have a negative impact on  Switzerland.

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