Extending its Asian session's uptrend, the Swiss franc soared to a new multi-day high against the pound in early European deals on Tuesday. Meanwhile, the franc recouped its Asian session's loss against the currencies of U.S., Japan and Europe.
The UBS consumption indicator for Switzerland rose to 0.87 in October from a revised 0.67 recorded in September, the UBS bank said today. It remained below its long-term average of 1.5, indicating a modest increase in private consumption year-on-year.
Despite brightening economic prospects for Switzerland, UBS economists expect private consumption to weaken in the coming months. In particular, the expected rise in unemployment and the associated job uncertainty are likely to dampen consumer behavior. UBS thinks a recovery in private consumption is unlikely before the middle of next year.
UBS forecasts Swiss GDP growth of 1.7% in 2010 and 2.1% in 2011. Although private consumption will probably make only a modest contribution next year, UBS economists expect it to contribute to economic growth again in 2011.
The Swiss franc that closed yesterday's trading at 1.6778 against the pound strengthened to a new multi-day high of 1.6692 in early deals on Tuesday. The next upside target level for the Swiss currency is seen at 1.666.
The Office for National Statistics reported that total business investment in the United Kingdom dropped 3% sequentially in the third quarter. Economists had expected investment to fall 5%.
On a yearly basis, total business investment plunged 21.7% in the third quarter, against expectations for a 22.9% slump.
The Swiss franc reversed direction after hitting lows of 1.0155 against the dollar and 87.37 against the yen at 2:30 am ET Tuesday. Currently, the franc is worth 1.0116 against the dollar and 87.72 against the yen, compared to yesterday's close of 1.0102 and 88.13, respectively. If the Swiss currency advances further, it may target 88.4 against the yen and 1.007 against the dollar.
The Bank of Japan raised its economic assessment for the third straight month, the latest Monthly Report of Recent Economic and Financial Developments revealed today.
The BoJ said Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although the momentum of self-sustaining recovery in domestic private demand remains weak. Last month, the central bank said Japan's economy has started to pick up.
The Swiss franc that fell to 1.5122 against the euro at 4:00 am ET Tuesday bounced back thereafter. As of now, the euro-franc pair is trading near yesterday's close of 1.5113. The near term resistance for the Swiss currency is seen at 1.509.
The German economy expanded 0.7% in the third quarter from the previous quarter, following the 0.4% increase seen in the second quarter, a detailed report from the Federal Statistical Office showed today.
The price-adjusted GDP was markedly down again on a year earlier. In the third quarter, GDP declined 4.7% compared to a 7% fall in the second quarter. The calendar-adjusted GDP was down 4.8%. The statistical office confirmed the preliminary estimate released on November 13.
In addition, German business climate index rose to 93.9 in November from 91.9 recorded in October, Ifo Institute for Economic Research said. Economists had forecast an increase to 92.5.
Ifo's current conditions index climbed to 89.1 from 87.4, more than the expected reading of 88. Similarly, the expectations index increased to 98.9 from 96.8, above the consensus forecast of 97.3.
In the upcoming North American session, the U.S. Bureau of Economic Analysis is due to release its third quarter GDP report at 8:30 am ET. The report is likely to show that the U.S. economy expanded at a 2.9% rate in the quarter.
Advance estimates revealed that the U.S. economy expanded at a 3.5% rate in the third quarter compared to a 0.7% contraction in the second quarter. Economists had expected a more modest 3.2% GDP growth.
At 9:00 am ET today, the S&P/Case-Shiller home price index is scheduled to be released. Economists expect a 9.05% year-over-year decline in the 20-city composite house price index for September.
The Conference Board is scheduled to release its consumer confidence report for November at about 10 am ET. The report is expected to show that the consumer confidence index edged down to 47.5 in November.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.