Finotec News Archive - September 03 2007

Sterling shows us strength against Swiss Franc

Anthony Boyajian
03 September 2007

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Technical Analysis
The Sterling continues the uptrend against the Swiss Franc; according to technical indicators the market has strong momentum. Other indicators as ATR, ROC, and RSI, are giving us bullish signals. The daily chart shows that the GBP/CHF recently breaks the resistance 2.4230 and fails to make a lower low then 2.4030

* The following analysis is for information only; Finotec is not responsible for any
decisions or misinterpretations based on the given text.

Fundamental
UK – Event risk in the UK will be mild over the next few days, and the Nationwide surveys of consumer confidence could fall back for the month of August, as volatile financial markets and the risk of tighter monetary policy may be cause for concern. The Bank of England’s rate decision will be the big draw, however, the central bank is highly unlikely and is not expected to adjust monetary policy as inflation remains below their 2 percent target.

Switzerland – While Swiss economic data tends to only have a short-term effect on the national currency, it will be worth looking at the SVME PMI and GDP releases, as they may be of importance to the SNB when they meet on September 13th. SVME PMI is anticipated to ease back slightly, but with estimates at a robust 61.5, it is clear that the Swiss economy remains one of the healthiest and most stable in the developed world. The second reading of Q2 GDP should echo this statement, with expansion anticipated to show a brisk 2.4 percent annualized pace – up from 2.2 percent in the first quarter.

The primary tendency continue the bullish trend which started from 11 July 2006

The pair reached 2.4968

The Minor trend is in a uptrend heading 2.4500

Resistance
2.5000
2.4750
2.4500

Support
2.4100
2.4000
2.3800

Finotec Analysis Team
03 September 2007

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