CHF: Swiss Franc still stands close to historic highs

At the Forex currency market Swiss Franc imperceptibly goes upward on Monday although movement is negligible in the market because most investors are absent. Franc is close to historic highs (0.8779) and it still has strong position.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and goes down, giving a pair sell signal. Stochastic Oscillator is close to the oversold zone today, maintaining a similar signal.

Forex recommendations: in case of breakdown at the level of 0.8840 the pair will go to 0.8830 and 0.8810. If downward breakdown does not take place the pair will consolidate in the existing range.

Note that sharp movements are not expected in the market today.
The situation in Swiss economy remains unchanged.

Representative of Swiss National Bank Mr. Dantin stressed earlier that the Bank is quite capable to ensure price stability even amid excess liquidity. In addition the politician said that the cost of intervention to the currency market will be determined by the informational pressure.

SNB has already highlighted the problems more than once: following the last meeting, the regulator said that strong currency is a burden for the economy and overprice will trigger slowdown in economic growth – largely due to the deceleration in export volumes. 
Three- month Libor rate remains unchanged, at the level of 0.25%.

It became known last week that economic sentiment index - ZEW increased to 8.8 points in April against the fall by 13.5 points in February. It was a positive sign for Switzerland which confirmed the continuation of the national economic recovery even regardless of strong Franc. The data of last week demonstrated also that producer price index and prices for import increased by 0.4% y/y in March which agrees with the forecasts.
Real level of retail sales in Switzerland increased by 1.5% m/m in February against the decline by 2.4% m/m in January; level of CPI in Switzerland rose by 0.6% m/m (+1,0% y/y) in March against the forecast of growth by 0.2% m/m. It is an ambiguous factor for Swiss economy as on the one hand the economy strengthens and on the other hand it suffers from significant inflationary pressure.

 
 
 

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