Forex Analytics from LiteForex of 15.11.10: CHF: Swiss Franc continues to grow weaker

At the Forex currency market Swiss Franc rate continues to go down; descending trend for the currency has been going on for the seventh session
in a row.

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 is giving a similar signal, being in the overbought area. 

Forex recommendations: if the current external background is maintained, buyers' targets will be the levels 0.9880 and 0.9930.
As it became known today producers' prices for imports in Switzerland declined by 0.4% on monthly basis (+0.3% y/y) in October, while a month
earlier the index did not change on monthly basis, showing growth by 0.7% on annual basis.
 

Looking at the movements of pair USD/CHF on the graph, there is the impression of the Central Bank's presence at the trading session, although
there was no official statement on this matter. However, Franc continues to retreat, saving the economy of Switzerland from the excessive pressure.
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 noticed that strong Franc and slow pace of the recovery of 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.

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