CHF: Swiss Franc resumed moving away from historical highs

At the Forex currency market Swiss Franc rate resumed falling pairing with the USD amid no traders’ interest in the currency as a safe heaven.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF, but is rising, giving a pair buy signal. Stochastic Oscillator still stays the overbought zone today, giving a pair the same signal.

Forex recommendations: if current sentiment for the pair AUD/USD remains intact and in case of 0.9235 breakup bulls’ target levels will be 0.9235 and 0.9265 for today.

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.

Important data on the Leading indicators KOF for March will become known on Wednesday, Retail sales and PMI are to come out on Friday. These indicators will present fresh information about the state of national economy.

 

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