Swiss Franc Hits Record High Against Euro Amid Market Volatility

The Swiss franc reached its highest level against the euro in nearly a decade on Monday. This surge is attributed to significant losses in stock markets, concerns over U.S. and global economic growth, and rising tensions in the Middle East, driving investors towards this safe-haven currency.

Swiss Inflation Steady as SNB Considers Next Rate Cut

Overview of Swiss Inflation Trends

Swiss inflation remained stable in July, indicating potential further easing from the Swiss National Bank (SNB). Consumer prices increased by 1.3% compared to the previous year, aligning with economists' predictions and falling below the SNB’s forecast of 1.5% for the third quarter.

Euro Slumps Against Swiss Franc After French Elections

Impact of French Elections on the Euro

The euro experienced a notable slump on Monday morning against the Swiss franc and, to a lesser extent, the US dollar, following a surprising electoral outcome in France. The Rassemblement National, led by Marine Le Pen and Jordan Bardella, lost the second round of legislative elections to the Nouveau Front Populaire. Additionally, the far-right was defeated by President Emmanuel Macron’s Ensemble party. At 08:46, the euro had declined by 0.22% against the franc, trading at 0.9687 EUR/CHF, and by 0.11% against the dollar, at 1.0828 EUR/USD.

Swiss National Bank Confident in Inflation Control

SNB President Thomas Jordan on Inflation Prospects

Swiss National Bank (SNB) President Thomas Jordan recently expressed confidence in Switzerland’s inflation outlook. Speaking to Le Temps, Jordan highlighted that officials are “relatively comfortable” with the country’s inflation prospects, especially after recent data showed a surprising weakening in annual consumer price growth for June.

Federal Council Appoints Martin Schlegel as New SNB Chairman

Leadership Changes at the Swiss National Bank

The Federal Council has announced key leadership changes at the Swiss National Bank (SNB). As anticipated, Martin Schlegel has been appointed as the new Chairman, while Petra Tschudin joins as a new member of the Governing Board. Antoine Martin will succeed Schlegel as Vice-Chairman. Schlegel will replace Thomas Jordan, who has led the SNB since April 2012 and will step down at the end of September 2024.