CHF: the Swiss Franc stands still, deciding on the future trend

Swiss Franc rate remains the same at the Forex currency market on Friday morning, deciding on the trend direction in front of a restless market.

Forex forecast: MACD indicator is in the negative area for the USD/CHF pair, nevertheless it plans to grow thus proving the previous currency pair buy signal. Stochastic Oscillator is still in the overbought area.

Forex recommendations: off the market.

Possible events scenario at Forex: in case of the 0.9670 level breakout the pair will head towards 0.9690 or 0.9720. If it breaks down the level of 0.9620, the buyers’ aims will be levels 0.9600 and 0.9580.

The Switzerland economy state remains without any significant changes. Swiss interest rate (Libor) is currently in the target level of 0-0.75%; the next Swiss National Bank meeting is scheduled for March 17. Then in 2011 the meeting will be also held on June 16, September 15, and December 15. We are reminding that the Swiss manufacturing activity index fell to 59.6 points in December compared to the expected 61 points and the previous rate of 61.8 points. According to the data made public at the end of December, the Swiss KOF indicator declined to the level of 2.10 in December from 2.13, nevertheless it is still high that proves an opinion that the state economy keeps rehabilitating.
 
It became known yesterday that the Swiss consumer price index, month on month, remained unchanged in December, showing growth by 0.5% year on year, when it was expected by analysts to grow by 0.2% m/m or by 0.3 y/y.

According to KOF estimates (Swiss institute of research on economic cycles) as long as the period of tension will last in Europe the Swiss Franc will retain the status of a protective asset and refuge.

KOF has also revised its forecast for GDP growth upward in 2011; Swiss economy is prognosticated to firm by 1.9% in 2011 compared to the previous forecast of 1.8%. In 1012 national economy is expected to rise by 2%.
 

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