CHF: Swiss Franc regains from decline earlier this week
At the Forex currency market Swiss Franc rate regains from yesterday’s fall, increasing along with the rest of the market.
Forex forecast: MACD indicator is in the positive area for the pair USD/CHF, however it descends, giving ground for a pair sell signal. Stochastic oscillator has come into the oversold zone and does not give a clear signal.
Forex recommendations: if current external background is maintained and in case of breakdown at the level of 0.9775 the pair will go to 0.9730 and 0.9680.
Inflation in Switzerland demonstrates growth (CPI in November: +0.2% m/m, (+0.2% y/y) against the forecast +0.1% m/m, (+0.1% y/y)- it is moderate at the moment however it is a positive factor for the economy which indicates stability. This data will support CHF in short term. It became known earlier that GDP in Switzerland rose by 0.7% q/q (+3.0% y/y) in QIII against the forecast of +0.5% q/q (+3.1% y/y). The fact that Swiss economy is growing above expectations has confirmed our theory about stability in the country. It is clear that European problems will have an impact there, as well as they will affect Great Britain for example; however situation in Swiss economy seems steadier.
Swiss Franc was fortunate last week –three days of Franc’s powerful growth has led the pair to the high level of 0.9710 – from where a lower border of the medium channel of 0.9640 is round the corner, and then a significant rise can start for the pair.
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