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!
By Yann Quelenn