The euro (EUR) slipped against the Swiss franc (CHF) on Monday, ending a two-day winning streak as momentum faded above the 0.9400 handle. By the start of the New York session, EUR/CHF was trading around 0.9384, with the franc drawing strength from stronger-than-expected labor market data that underscored the resilience of Switzerland’s economy.
Fresh figures from the Swiss Federal Statistical Office showed total employment rising to 5.532 million in Q2, up from 5.512 million in the previous quarter, marking a 0.6% annual increase. The report highlighted steady hiring trends despite global headwinds, although vacancy data suggested a softening in demand within IT and administrative roles. Sectors such as healthcare and services, however, continued to absorb labor. The upbeat headline supported confidence in the franc, offering a fundamental tailwind against the euro.
Trade backdrop adds complexity
On the trade policy front, the US and EU last week unveiled details of a new “Framework for Reciprocal, Fair, and Balanced Trade.” Under the arrangement, Washington will apply a uniform 15% tariff on most EU-origin goods, including autos, once Brussels enacts legislation to reduce barriers on US industrial and agricultural exports.
Switzerland, meanwhile, is racing to mitigate the impact of steeper US tariffs — currently set at 39% — by preparing a revised proposal aimed at securing equal treatment. The package is expected to feature expanded defense procurement commitments and enhanced energy market access for American suppliers, in a bid to match the 15% tariff level extended to the EU.
Key data to watch
Attention now turns to upcoming releases from both economies. In Switzerland, the August ZEW Expectations Survey is due Wednesday, followed by Q2 GDP figures on Thursday, which will provide a clearer view of domestic growth momentum.
In the euro area, Thursday’s calendar features the August Economic Sentiment Indicator and the European Central Bank’s Monetary Policy Meeting Accounts, both of which could offer fresh signals on policy direction and broader investor sentiment.
