CHF: Swiss Franc still remains in the same range

Swiss Franc rate is traded in the same price range as in the last four days at the Forex currency market on Wednesday. The graph shows that the price for the pair USD/CHF has come close to the strong resistance level therefore medium trend can be identified soon.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF; however it moves along the signal line and does not give a clear signal. Stochastic Oscillator has merged with the signal line and did not form a signal.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case if breakdown at the level of 1.0050 the pair will go to 1.0075 and 1.0120. If the level of 0.9970 is exceeded, traders’ targets will be the levels of 0.9925 and 0.9870.

Sovereign risk in Europe has more negative sides than positive ones for the CHF at the moment, as investors have not figured out completely future expectations. In general, November was quite favourable for Swiss currency and it increased by 3.25%.

Otherwise economic situation in Switzerland has not changed significantly.

According to the data released earlier, 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 has remained 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. 

It became known on Tuesday that consumption indicator rose to 1.716 in October against the preliminary estimation of 1.695 in Switzerland.

Meanwhile 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 stabilization in the summer seems alarming. Consumer spending remains to be a strong factor that can overbalance this indicator.

 

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