Forex Analytics from LiteForex of 10.11.10: CHF: The decline of Swiss Franc continues for the fourth consecutive session

Swiss Franc continues to weaken at the Forex currency market on Wednesday; the currency’s decline has been going on for the fourth consecutive day.

Forex forecast: MACD indicator is in the negative area for the pair USD/CHF, however it goes up, confirming a previous buy signal for the pair. Stochastic Oscillator is giving a similar signal, being in the overbought zone.

Forex recommendations: if the current external background is maintained and in case of breakdown at the level of 0.9720 the pair will go to 0.9750 and 0.9800.

It became known yesterday that consumer confidence level in Switzerland reduced to 7 in October, as per SECO, against the forecast of 17. In general Franc did not pay much attention to the statistics, because it had been under pressure from the USD amid instability at the global financial markets.
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. The head of the Swiss National Bank Hildebrand is confident that current level of the interest rate in Switzerland is still acceptable; he pointed however that current situation is ideal for the emergence of risks.

Member of the board of the Swiss National Bank Mr. 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 their recovery is very unstable. In his opinion estimation of the Swiss GDP for September is justified. Dantin noticed that strong Franc and slow pace of the recovery of the world finance system have a negative impact on Switzerland.

[More]