17 July, 2015
Economists assume that the CHF strengthening after the country abandoned currency pegging is damaging the economy. Due to stronger Frank tourism into the country became less attractive, while the majority of Swiss are traveling to Europe for shopping as they can buy more there with their stronger currency.
On the other hand, exports to the US increased due to the fast recovery of the American economy and relatively little CHF growth against the USD.
Generally, because of the negative interest rate at -0.75% in Switzerland, in the long-term the CHF is going to remain under pressure.
Support and resistance
The pair is trading near the important resistance level of 2/8 Murray. If it is not broken out, the pair might fall towards 0.9521 (8/8 Murray).
The nearest resistance level is 0.9583 (2/8 Murray).
Support level: 0.9552 (1/8 Murray).
Open short positons after the breakdown of the level of 0.9552 with the target at 0.9510 and stop-loss at 0.9583.
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Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
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API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...
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