THE TAKEAWAY: Swiss UBS Consumption Indicator rises to 1.26 in February -> Swiss economic growth slowed in Q4 -> No reaction in Swiss Franc trading
The Swiss UBS consumption indicator climbed to 1.26 in February, higher than the revised 1.15 indicator reported in January. The indicator tracks consumer spending using statistics gathered from new car sales, business trends in retail, overnight hotel stays by locals, the consumer sentiment index, and credit card transactions.
The Swiss economy expanded by 0.2% in Q4 of last year, following a 0.6% GDP rise in the third quarter. Signs of improved economic growth are Franc positive.
However, the higher consumption indicator did not significantly impact Swiss Franc trading in Forex markets. EUR/CHF is trading slightly below 1.2200, and support might next be seen by a monthly low of 1.2168, resistance may be seen at 1.2223, by the 61.8% Fibonacci retracement of the rise from February’s low to March’s high.
EURCHFDaily: March 27, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to bbspier@fxcm.com .
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