REASONS FOR TRADE:-
GBP and CHF interest rates have not changed hence a signification in the direction of trend.. but the Konjunkturforschungsstelle Swiss Institute for Business Cycle Research capturing the economic trend in Switzerland signifies optimistic view for consumers encouraging more spending. while the GBP report signifies the viceversa and consumers holding on to there resourses..This in turn causes a higher purchasing power of the GBP against CHF. after the Swiss National Bank kept its policy rate and the interest rate it charges on overnight deposits it holds for commercial banks at -0.75 percent and said it remains willing to intervene more strongly in the foreign exchange market to stop the rise of the highly valued franc. The Swiss economy is expected to contract by 6% in 2020, the worst since the oil shock of the 1970s; and consumer prices are expected to drop 0.7% in 2020 and 0.2% in 2021.
The rise in the value of CHF has raised concerns between the central bank and the Swiss government.
Because part of Switzerland's economy is dependent on exports, and the appreciation of the country's currency hurts the export sector.
As the head of the Swiss Central Bank announced on June 18, the currency has become too strong, and we still want to intervene more in the foreign exchange market.
TECHNICALS;
The red highlighted level incidences with a strong demand level dating 12/8/19 and with 1.618 fib level.
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GBP and CHF interest rates have not changed hence a signification in the direction of trend.. but the Konjunkturforschungsstelle Swiss Institute for Business Cycle Research capturing the economic trend in Switzerland signifies optimistic view for consumers encouraging more spending. while the GBP report signifies the viceversa and consumers holding on to there resourses..This in turn causes a higher purchasing power of the GBP against CHF. after the Swiss National Bank kept its policy rate and the interest rate it charges on overnight deposits it holds for commercial banks at -0.75 percent and said it remains willing to intervene more strongly in the foreign exchange market to stop the rise of the highly valued franc. The Swiss economy is expected to contract by 6% in 2020, the worst since the oil shock of the 1970s; and consumer prices are expected to drop 0.7% in 2020 and 0.2% in 2021.
The rise in the value of CHF has raised concerns between the central bank and the Swiss government.
Because part of Switzerland's economy is dependent on exports, and the appreciation of the country's currency hurts the export sector.
As the head of the Swiss Central Bank announced on June 18, the currency has become too strong, and we still want to intervene more in the foreign exchange market.
TECHNICALS;
The red highlighted level incidences with a strong demand level dating 12/8/19 and with 1.618 fib level.
FOLLOW, LIKE & SHARE, COMMENT TOO..