CHF: Weakness of Swiss Franc is becoming more evident, however this is only temporary phenomenon

Swiss Franc rate continues to retreat at the Forex currency market on Wednesday amid lack of investors' interest to risk and uncertainty in the
peripheral countries of Eurozone, investors prefer the USD Dollar.

Forex forecast: MACD indicator is in the positive area for the pair USD/CHF and it goes up, confirming a previous buy signal for the pair. Stochastic
Oscillator has not formed a clear signal today, being in the overbought zone.

Forex recommendations: off the market.

Feasible event scenario at Forex: in case of breakdown at the level of 0.9975, the pair will go to 1.0000 and 1.0020. If the level of 0.9945 is exceeded, traders' targets will be the levels of 0.9920 ? 0.9880. Swiss data, published this week is not too positive: index of the import prices reduced by 0.9% m/m (+0.2% y/y), producer prices index dropped by 0.2% m/m (+0.4% y/y) last month. Besides, producer price index and index of import prices (total) subsided by 0.4% m/m Worth noting that data on the country's trade balance and index of investors' economic expectations ZEW will be released on Thursday. So, increase in the pair's volatility can be expected on this day.

Representative of Swiss National Bank Mr. Jordan noted not once that prolonged retention of the interest rates at the low level can cause additional risks for the economy. SNB intends to closely monitor the dynamics of the real estate sector. We would remind that Dantin noted earlier that crisis in the developing countries has slowed down and almost finished and economies of Japan and the West are recovering however recovery is very  unstable. In his opinion estimation of the Swiss GDP for September is justified. Dantin noted that strong Franc and slow pace of the recovery in the world finance system have a negative impact on Switzerland.

Thus, while Franc is far from its highs, the SNB will not need to make decisions on the rate increase. However it is worth emphasizing that in the medium term the CHF will look more attractive that its European counterparts, since the state of affairs in Switzerland is much more stable.

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