UBS’s Swizz consumption indicator showed significant growth in March, thus reaching 1.22 points. The major reasons are higher retail sales, record-high registration of new cars and higher number of guests in Swiss hotels.
The consumption increase (1.2%) in 2012 expected by UBS completely corresponds to the indicator readings. However, the experts say there are some factors that may bring some changes. Firstly, the indicator doesn’t’ take into account the demographic factor (this year the population is expected to grow by 1%). Secondly, according to the formula the indicator is based on, lower prices have a negative impact on the results. Nevertheless, in essence, lower prices should contribute to the indicator growth as it reflects consumers’ purchasing power.
Forex.
According to , the Swiss Franc keeps strengthening against the US Dollar. USDCHF is forming sub-wave А(С)/С inside a major downswing - А/В of Daily. The closest levels of support are 0.9060, 0.9030. A break above 0.9140 will suggest the end of the current downswing.
