2012-02-24 10:59:00
At the Forex currency market Swiss Franc rate is still traded close to the highs of 16 weeks at the end of the week.

Forex forecast: MACD indicator for the pair USD/CHF is in the negative area; it is moving along the signalline again and is not giving a clear signal. StochasticOscillator has gone to oversold zone and is giving a sell signal.

Forex recommendations: in case of breakdown at 0.9010, the pair USD/CHF will go to 0.9000 и 0.8980.

Economic situation in Switzerland has not changed fundamentally on Friday.

Note that actually a new round of strengthening in Franc took place not without interference of the authorities.Earlier, Minister of Economic Affairs of the country added fuel into fire whenhe stated that it would be logical to change pegging level of Franc / Euro to1.40 (now it is 1.20). He believes that in this case, the pair EIR/CHF would becloser to purchasing power. In addition, the politician said that SNB needs a newhead as soon as possible.

We would remind that SNB does not have a leader since resignation of Hildebrand in January.

Earlier Jordan, monetary politician, acting as a head of SNB said that the regulator firmly determined to maintain the level of 1.20 in the pair Euro/Franc. He is also prepared toadopt additional measures if economic situation requires. He also confirmedthat economic growth rate slowed down this year in Switzerland, although thereis no risk of the rise in inflation. He believes that Franc is still too strongand reduction in its price is urgently required.

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 theindex and at the same time it is maximal fall since October 2009. Expensive Yenseriously hampers the progress of economy: at the beginning of the year importof consumer goods fell by 1.8% m/m (-3.2% y/y), however the goods of Swissproduction rose in price by 0.1% m/m. Therefore, inflation threat is becomingmore tangible in Switzerland. Index of economic expectations ZEW rose to -21.2points in February against the level of -50.1 points in January.

Trade balance in Switzerland amounted to -1.553 billion francs in January against the forecast of -2.50 billion francs. The report showed that exports decreased by 3.4% last monthagainst preliminary estimate of growth of 6.1%; imports increased by 3.6%(preliminary forecast: +7.6% m/m).The data is not too positive, since levels ofexports are in the red again.