At the Forex currency market Switzerland Franc has equivocal position and the currency demonstrates consolidation close to 1.0750.
Forex forecast: on Thursday MACD indicator for the pair USD/CHF is in the positive area, however it continues to move above its signal line giving the pair buy signal. Oscillator stochastics is in the oversold zone today, obviously it is trying to form, a buy signal for the pair.
Forex recommendations: off board.
The following Switzerland data was released today:
– March unemployment rate 4,2% against 4,3% anticipated and 4,4% for the previous period
The data published on Tuesday showed that consumption prices index in Switzerland in March was 0,1% m/m and 1,4% in the annual estimation against the forecasted level of +0,1% m/m, +1,4% a/y and preceding index +0,1% m/m in February
The Switzerland bank board councilor, Mr Dantin pointed out last week that the bank policy which has the expansive tendency is the most logic at the moment. In his opinion the bank of Switzerland has all means to withstand Swithzerland franc’s excessive consolidation
Earlier the Switzerland Bank President Mr Khildebrang stated that the bank can buy a considerable amount of foreign currency to keep deflation in check and soothe Switzerland franc’s rate. «We will not let deflation be back and our position is utmost clear. The means we have available are plain: we buy foreign currency and the purchase volume can be high” - he stressed out.
«You should look at the Switzerland economic development. It was quite steady last year, the drop was only to 1,5% it is a good index compared to many other countries. I would say that we had done a lot to prevent more dramatic recession” expressed his opinion Mr. Hilderbrand .
Recently the Switzerland Minister of Finance stated that there is no any pressure currently which will force to carry out currency market inventory now. The Minister also pointed out that in his opinion current Euro/Franc exchange rate is acceptable
Earlier Switzerland Bank’s representatives stated that currency market inventory should be carried out in the nearest future to restrain the national currency growth. It was pointed out that currency market changes have been thoroughly examined. The Bank of Switzerland reckons that the strong franc can be disastrous for the country’s recovering economy
As for the country’s economic situation in general we would point out that starting from 1012, new regulations will be introduced in the country. According to the new regulations banks will have to accumulate their own funds to withstand financial problems in the future. “A full set of regulations will be ready by the end of 2010. Regulations will be gradually introduced alongside with the improvement of the economic financial condition. The regulations complete introduction and adaptation are scheduled for 2012” says the earlier published document
Interest rate in Switzerland is within the target range 0-0.75.