CHF: Swiss Franc regains from the previous fall

At the Forex currency market Swiss Franc rate regains from the previous fall on Tuesday using a chance that investors fled to the safe assets.

Forex forecast: MACD indicator is in the positive area however it moves along the signal line and does not give a clear signal. Stochasic Oscillator is in the neutral zone, giving a pair sell signal.

Forex recommendations: if current external background is maintained, bearish sentiments might intensify for the pair and then traders’ targets will become the levels of 0.9925 ? 0.9880.

It became known on Tuesday that consumption indicator rose to 1.716 in October against the preliminary estimation of 1.695 in Switzerland.
Otherwise the situation in Swiss economy remains the same.

Economists’ belief, that economic growth in Switzerland will slow down in QIII continue to find confirmations. Thus, KOF indicator released on Friday showed the decline to 2.12 in November against the previous level of 2.16. Although indicator of the business expectations is still in the positive area, its decline after summer’s stabilization seems alarming. Consumer spending remains to be a strong factor that can overbalance this indicator.

Philipp Hilderbrand, the head of Swiss National Bank, said earlier that his belief in the stability of Eurozone remains unchanged. In his view, European leaders are able to adopt measures to restore financial stability which, in its turn, will reduce pressure on the CHF“. “I am convinced that European Union and Eurozone will cope with challenges. Stability of the Eurozone is an important factor which affects the Franc and economy.” –he emphasized in his speech. According to the data released last Thursday, employment in Switzerland excluding agricultural sector increased to 4.08 million people in QIII against the previous level of 3.97 million people. The data is positive for the domestic economy.

The next meeting of the National bank of Switzerland is scheduled for 16 December. We will remind that interest rate in Switzerland remains unchanged for 19 months already at the level of 0.25% per annum. The head of the Swiss national Bank Mr. Hilderbrand is convinced that current level of the interest rate is acceptable and he noted that the situation now is ideal for the rise of the risks. 

 
 

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