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.

Swiss National Bank Lowers Policy Rate Amid Declining Inflation Pressure

June 20, 2024 - The Swiss National Bank (SNB) announced on Thursday that it has reduced its main policy rate by a quarter of a percentage point, lowering it from 1.5% to 1.25%. This decision was driven by a drop in "underlying inflationary pressure," despite increases in costs for rents, tourism services, and oil products.

Swiss Economy Set for Recovery with European Support, Says KOF

KOF Predicts Economic Upturn in Switzerland

The anticipated revival of the Swiss economy is expected to materialize soon, driven by support from Europe, according to the KOF Swiss Economic Institute.

KOF economists forecast a recovery beginning in the second half of this year. Specifically, they predict a 1.2% increase in sport-adjusted gross domestic product (GDP) for 2024 and 1.8% for 2025. This optimistic outlook was shared on Monday by the think tank affiliated with the federal technology institute ETH Zurich.