CHF: Swiss Franc Tendency to rise never ceases to amaze

At the Forex currency market Swiss Franc rate continues to rise in pairing with the USD on Wednesday attracting investors as a protective asset.
 

Forex forecast: MACD indicator is in the negative area for the pair and it continues to descend, confirming a previous sell signal for the pair. Stochastic Oscillator has come into oversold zone today and has not identified a clear signal.

Forex recommendations: if current market sentiments will be maintained and in case of breakdown at the level of 0.9550, traders’ targets will be the levels of 0.9510 and 0.9450.

It became known yesterday that positive trade balance in Switzerland declined to the level of 1928 billion Swiss francs in November; while the growth to the level of  2173 billion francs had been projected.

Important statistics on Eurozone countries and the USA will be released today due to which activity in the pairs can decline in advance of the publication.

In other respect, the situation in Switzerland still remains unchanged.

At the meeting which was held last week, Swiss National Bank decided to maintain three months rate Libor in the previous target range of 0-0.75. This decision of the Bank was expected by the market. Index was revised in March 2009 the last time when it was reduced by 0.25%.
In addition, according to KOF estimates, Swiss institute of research on economic cycles, Swiss Franc will retain the status of a protective asset and a refuge as long as the period of tension will be maintained in Europe.

KOF has also revised its forecast for GDP growth upward in 2011; is it projected that Swiss economy will increase by 1.9% in 2011 against the previous forecast of 1.8%. In 1012 national economy is expected to rise by 2%. This year, GDP growth in Switzerland can amount to 2.7%.
Market believes that SNB will carry out intervention on a unilateral basis next year if the Franc will continue to grow rapidly.

 

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