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    USD/CHF: The rise in the USD is gaining momentum on 29.03.2016

    As the time of the speech by Janet Yellen is approaching (18:20 GMT 2), the USD is growing in the market and in the pair USD/CHF.

    Investors’ confidence in the USD has increased after some comments by the US Fed representatives last week about possibility of the rise in the interest rates.

    Investment attractiveness of the USD will increase in case of the rise in the interest rates in the USA. If Janet Yellen indicates in her speech that the rise in the interest rate is possible in April or June, the USD will grow up in the financial markets.

    Recall that at the meeting in March SNB did not change the key interest rates. The rate on deposits now is -0.75%. Target range for the 3-month interest rate LIBOR is from -1.25% to -0.25%.

    According to SNB economic growth in the country will gradually accelerate. Government expert group believes that GDP will grow by 1.8% by the end of 2017.

    SNB has repeated again that Swiss Central bank can carry out intervention in the currency market if needed. Inflation rate in Switzerland is decreasing. Producer price index and the price of imports in February fell by 0.6% against the previous months and the decline of 4.6% against last February. Tomorrow, Swiss consumption index will become known. The index shows the level of sales of new cars, activity in the retail sales sector and the number of booked nights in the hotels of Switzerland, the level of consumer consumption and the volume of transaction on the credit cards (08:00 GMT 2); index of leading indicators KOF (which is an indicator of economic stability in Switzerland) (09:00).

    If the indices will be lower than the previous values, it will indicate slowdown of economic development in Switzerland and slowdown of the domestic consumption, which will have a negative impact in the rise of inflation in the country. It is likely that the pair will go up until the next meeting of the US Fed on 27 of April.


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