CHF: Swiss Franc remains flat

At the Forex currency market Swiss Franc rate remains flat, trading slightly upward.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is rising, maintaining a former buy signal. Stochastic Oscillator left the overbought zone today and is decreading, giving a pair sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9180 the pair will go to 0.9200 and 0.9220. If the level of 0.9160 is exceeded, traders’ targets will be 0.9150 and 0.9135.

As it became known today, KOF Indicator in Switzerland rose to 2.24 points in March against the forecast of 2.18 points. It is a positive signal for the national economy.

Representative of Swiss National Bank Mr. Jordan said the day before that strong national currency is one of the main reasons for economic growth weakening and puts downward pressure on inflation. According to his speech current monetary conditions look favorable, but different market segments respond to them differently.

Expensive CHF is negative for exporters, prevents rates from stabilization and influences monetary policy tightening.
Swiss National Bank adopted measures of verbal intervention against the Franc last week: representatives of the SNB said following the meeting that strong currency is a hard burden for the economy and its inflated price will trigger a slowdown of  economic growth – largely, due to the decrease of the export volumes.

Level of three-month LIBOR rate was left unchanged, at the 0.25%, as expected.
Note that verbal interventions are ordinary for SNB. Previously Swiss National Bank started to indicate that intervention of possible: representative of the regulator Mr. Dantin said that the Bank is able to ensure price stability even amid excess liquidity. In addition the politician noted that the cost of the intervention at the currency market will be determined by the information pressure.

Markets will be awaiting the data on Retail sales in February and PMI Index tomorrow.

 

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