"The indicator adds to the evidence that the outlook for the Swiss economy is improving, and most institutes--including ourselves--forecast an acceleration of economic growth next year"
- Credit Suisse
On the back of strong domestic demand and economic revival in the neighbouring Eurozone, Switzerland has been developing at a stable pace during the last several months. In addition to that, the pace of growth is likely to accelerate as economic expectations soared to the highest in almost 3 1/2 years this month. Hopes that the Eurozone economy will boost growth in the Alpine country lifted a measure of investor and analyst expectations to the highest since May 2010. A survey from the ZEW Institute and Credit Suisse Group said the index hit 24.9 points in October, up from 16.3 a month earlier, reflecting the number of participants, who expect the economic outlook to brighten, is higher than the number of pessimists. The reading couples with the equivalent October ZEW research in Europe's powerhouse, Germany, where the similar measure climbed to the highest October 2010, amid signs a broadening economic recovery.
Due to weak inflation data from Europe and further signs of economic amelioration in Switzerland, the Swiss Franc appreciated against the single currency and hit a session's low of 1.2336, however, later the pair hit 1.2365. In case the pair will continue moving up, bulls may face strong resistance at 1.2414. Nonetheless, the main driver for the pair remains political situation in the United States, rather than economic data from Europe or Switzerland.
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