The Swiss unemployment rate decreased to 3.3% in April - but we recall that since 2011, the unemployment rate has increased from 2.7%.
There are two major things that can be said about this. First, the Swiss economy is very resilient despite the strong franc and the jobless rate is still very low. Secondly, the trend is anyway somewhat negative, which shows that the economy is suffering from the strong franc.
After the French election, we are seeing the EURCHF back above 1.09, which is definitely taking away some more pressures from the SNB. The Swiss institution is certainly very happy, at least in the short-term, to see European political uncertainties moving away. In a few weeks the French parliamentary election will be held but we do not see opposition parties gaining the advantage at this stage.
The next SNB meeting will be held in June and we do not see any change in the market conditions. Rates are not going to be hiked or lowered and will likely stay at -0.75%. Swiss Monetary Policy is going to remain loose for some more time!
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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