Swiss unemployment comes in as expected

ForexNewsNow | Published on November 8, 2010 at 9:01 am

Swiss flagNEW YORK (Forex News Now) – Swiss unemployment, released this morning, came in at 3.6% exactly as expected which brings the unemployment rate to its lowest level in the past 18 months.

This sets the stage for Swiss employment and to strengthen in the near future, as companies have added workers encouraging consumer demand pushing the economic recovery in Switzerland ahead.

The low unemployment rate flies in the face of the rest of the world who are busy trying to devalue their currencies. The Swiss franc has been strengthening quite rapidly over the course the last few months. While the rest of the world tries to weaken their currencies to push exports, the Swiss were forced to accept a stronger franc as the rest of the world bought the safe haven currency.

Looking at the charts, the USD/CHF pair appears to be trying to form a double bottom, as shown by the arrow on the chart. With Friday’s close forming a hammer on the daily chart near the previous areas support at 0.9550, the pair seems to be strengthening in the short term.

Also note is the recent retest as of Friday of the former downtrend line shown in blue on the chart attached. This appears to be a simple case of resistance turning into support, and varying basic tenet of technical analysis.

While this far too early to tell, a break of the recent high at 0.9950 would be even further confirmation of a trend change, or at least a major pullback. The chart appears to be focusing less on the Swiss franc and more on the U.S. dollar, perhaps for the safe haven status of the greenback. While it is somewhat counterintuitive, sometimes currencies get pushed around but find their fundamentals, but by larger amounts going on around the world.

USDCHF Nov 8

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