2012-02-13 11:20:00
At the Forex currency market Swiss Franc has resumed its growth at the beginning of the week, once again approaching local highs.

Forex forecast: MACD indicator for the pair USD/CHF has broken through the signal line from top to bottom and is in the negative area now, giving a sell signal. Stochastic Oscillator came out of the neutral zone; apparently it tends to come back there again and is prepared to give a sell signal.

Forex recommendations: in case of breakdown at 0.9110, the pair USD/CHF will go to 0.9100 and 0.9080. Consolidation near current levels is possible.

According to the previous data, inflation in Switzerland fell by 0.4% m/m (_0.8% y/y) in January against expectations of decline of 0.2% m/m. This is the fourth consecutive drop in the index and at the same time the maximum fall since October 2009. Expensive Yen seriously hampers economy: at the beginning of the year import of consumer goods fell by1.8% m/m (_3.2% y/y), however the goods of Swiss production rose in price by0.1% m/m.

Therefore, threat of inflation is becoming evident for Switzerland

A lot of questions have risen because of the fact that Swiss National Bank has not reacted to the rise in Franc's price has risen. Statistics released earlier showed that consumer confidence in the country increased to -19 points in January, against the level of -24 points in December and the forecast of -22 points, as per SECO estimates.

Monetary politician Mr. Jordan said earlier that SNB is firmly determined to maintain the level of 1.20 in the pair Euro/Franc and is prepared to adopt additional measures if economic situation will require. He also confirmed that economic growth rate has slowed down in Switzerland this year, although there is no risk of rise in inflation. He believes that Franc is still too strong and reduction in its price is necessary. Swiss economists said earlier that second half of this year is going to be better than the first one, Swiss economy is stable enough to survive mild recession. Naturally, it will affect the economic growth rate in the country: slow growth rate of GDP is expected in 2012.

It became know earlier that unemployment rate in Switzerland amounted to 3.4% in January against the forecast of 3.5% and the previous value of 3.3%. This is the highest level of the index since last spring and quite negative indication in the state of affairs in the national economy. Representative of SNB Mr. Dantin said earlier that, decline in the rate of Franc is possible in perspective, as measures to restrict its grow thare going to be introduced. He once again outlined well-known positions of SNB about possibility of unlimited purchases of foreign currency in order to keep Franc in permissible price limits.