CHF: Swiss Franc remains within the range

At the Forex currency market Swiss Franc rate is traded upward on Thursday, and still remains in the range of 0.9084-0.9225.

Forex forecast: MACD indicator for the pair USD/CHF is going up in the positive area and is shaping a buy signal. Stochastic Oscillator is descending in the neutral zone and is giving a sell signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9175, the pair USD/CHF will go to 0.9160 ? 0.9150.

Situation in Swiss economy remains unchanged this morning.

Attention today will be focused on the employment data in non-agricultural sector in Q3. It became known yesterday that trade balance in Switzerland amounted to 2.15 billion francs in October against the forecast of 2.06 billion francs. The data is good considering global decline in demand and expensive Franc.

Unemployment rate in Switzerland rose to 2.9%, which had been an expected rise from 2.8%. The data which is going to be released this week will show dynamics in the index.

Representative of SNB Mr. Jordan reported earlier that Swiss regulator does not need external guidance on monetary policy, as it is an independent institution and does not intend to receive instructions from business groups and politicians. SNB will continue to take appropriate measures if it is required considering the state of economic forecasts and deflation. According to him slowdown in economic growth in Switzerland, which took place earlier, was caused by high exchange rate of Swiss Franc.

According to Swiss National Bank estimates, GDP in Switzerland will amount to 1.5%-2.0% this year; main growth will be attributed to the results of the first part of the year. SNB noted in the comments that if stringent monetary measures had not been taken the economy would have slipped to a recession. SNB expects that inflation will be at the level of 0.4% in 2011 and at the level of 0.3% next year.

Surplus of trade balance amounted to 1850 billion SHF in September. It became known earlier that consumption indicator UBS in Switzerland rose to 0.84 points in September against the revised level of 0.80 points in August.  Taking into account that the data reflects the figures of the months when SNB has fixed the rate of the Franc, the index looks very much positive. Producer prices and import prices in Switzerland declined by 0.1% m/m (-2.0% y/y) in September.