Tatiana Kashyrskaia
The January value of the KOF leading indicator testifies that the Swiss economy is slowing down. Some experts say that the negative tendency is mainly the result of lower European demand and stronger Swiss currency, which keep affecting Switzerland’s export.
In January the index declined by down to -0.17, which is 0.18 points lower than the previous value. Moreover the stats came out worse than expected. The KOF indicator is believed to predict the state of affairs in the Swiss economy for the next 6 months. It has been declining for 9 months in a row.
In the meantime, the Swiss Franc keeps strengthening against the US Dollar. According to the Department of Masterforex-V Trading System , USDCHF is implementing the bearish scenario given in the outlook for Jan 26th 2012. The closest levels of support are 0.9111/07, 0.9084/77, 0.9040, 0.9023/15 and 0.9065. The downtrend will be over as soon as the price breaks above the MF sloping channel and pivot 0.9227 (as shown below):
Tatiana Kashyrskaia
