Mr Jean-Pierre Danthine, Member of the Governing Board of the Swiss National Bank doesn’t deny the possibility of implementing a series of currency interventions aimed at restraining the growth of the Swiss Franc.
Yesterday he announced it during his speech in Geneva. But such steps will be taken only if there are high risks of deflation under the slowdown of the Swiss economic growth. At the same time Danthine notes that the Swiss National Bank hasn’t noticed any deflation processes in Switzerland so far. According to the inflation forecasts, the prices will remain intact over the next few quarters.
In its turn the Swiss Franc currency rate keeps rapidly growing and is going to update its high. The USDCHF chart indicates the formation of the strong bearish wave, which still may be wave B of level D1. The breakout of the MF Sloping Channel will give rise to the formation of either wave B on D1 in favor of the CHF strengthening or wave a(C ), indicating the weakening of the Swiss national currency.
News expected for today (GMT):
15:30 USD Change in Non-farm Payrolls
15:30 USD Unemployment Rate
18:00 USD Fed’s Ben Bernanke speaks
Support/Resistance levels:
0.9763 – 50%
0.9713 – 38.2%
0.9652 – 23.6%
0.9571 – the current price
0.9545 – 200%
0.9522 – 88.2%
0.9464 – 238.2% + D1 base
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Text: Ivan Zhigalov, an expert of the Department of studying Masterforex-V trading system
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