At the Forex currency market Swiss Franc rate is getting weaker on Tuesday, due to ambiguous sentiment in the market.
Forex forecast: MACD indicator for the pair USD/CHF is in the negative area, it goes down and is giving a sell signal. Stochastic Oscillator goes up in the neutral zone and is giving a buy signal.
Forex recommendations: in case of breakdown at 0.9190, the pair USD/CHF will go to 0.9200 and 0.9220. Consolidation near current levels is possible.
Monetary politician Mr. Jordan said earlier that SNB is firmly determined to maintain the level of 1.20 in the pair Euro/Franc. The bank will be also prepared to adopt additional measures if economic situation requires. Jordan confirmed that this year economic growth rate has slowed down in Switzerland, although there is no risk of inflation. He believes that Franc is still too strong and reduction in its price is urgently required. Swiss economists said earlier that second half- year is going to be better than the first one, Swiss economy is stable enough to overcome mild recession. Naturally, it will affect 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 a negative indication of the state of the national economy.
We would remind that the head of Swiss National Bank Phillip Hildebrand resigned at the beginning of January. The name of successor is still unknown and it is not clear either if a new governor of the Bank will adhere to the same policy as his colleague in monetary issues. Swiss government noted earlier that search for the candidate for SNB governor will take several months. Earlier, Swiss government indicated intention to revise policy of supervision over SNB activity. 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 it is maximal fall since October 2009. Expensive Yen seriously hampers the progress of economy: at the beginning of the year import of consumer goods fell by 1.8% m/m (-3.2% y/y), however the goods of Swiss production rose in price by 0.1% m/m. Therefore, inflation threat is becoming more tangible in Switzerland.
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