CHF: Technical pullback is Swiss Franc is taking shape for Swiss Franc

At the Forex currency market Swiss Franc rate is being corrected after four sessions of steady growth.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF, giving a pair buy signal. Stochastic Oscillator has come into oversold zone today, and is still giving a pair sell signal, creating a basis for a signal reversal.

Forex recommendations: buyers’ targets today will be the levels of 0.9530 and 0.9565.

As it became known yesterday, index of expectation ZEW in Switzerland increased to -17.2 points in February against the level of -18.4 points in January. In general, the situation in the country’s economy remains unchanged.

According to the newspaper Handelszeitung, currency intervention of the National Bank of Switzerland, carried out last year, has reached its objective, according to the head of the Bank, Philipp Hildebrand. He says that Switzerland has achieved price stability and got rid of the signs of inflation. We would remind that SNB had been buying the Euro since March 2009 until the middle of 2010 to limit the growth of Franc.

Hildebrand is confident that Switzerland is in more advantageous position now compared with Eurozone, where inflation amounts about 2%. Price stability, according to the monetary politician, does not give rise to complaints. 

It became known earlier that CPI increased by 0.4% m/m, +0.3% y/y in January, against the forecast of -0.2% m/m, +0.6% y/y; consumer confidence SECO in January: 10 against preliminary level of 7.  Inflation rate indicates slowdown of the recovery process in Swiss economy and high rate of the Franc is also a party at fault.

? We would remind that statistics on Swiss unemployment rate released last week showed that the rate remained at the level of 3.5%. According to the estimates of the State Secretariat of Economic Affairs (SECO), unadjusted unemployment rate amounted to 3.8% last month. Thus, a number of unemployed in Switzerland totaled to 136.542 thousand (earlier: 140.090 thousand).   According to UBS study the level of private consumption increased to the level of 1.7% in January, which above the average annual level.

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