EUR/CHF retreats as Swiss employment data lifts Franc strength

• EUR/CHF snaps a two-day winning streak after failing to clear the 0.9400 barrier.
• Swiss employment rises to 5.532M in Q2, up from 5.512M, showing a 0.6% annual increase.
• Traders eye upcoming Swiss ZEW Survey and GDP data, alongside Eurozone sentiment indicators and ECB minutes.

The Euro (EUR) edges lower against the Swiss Franc (CHF) on Monday, snapping a two-day winning streak as bulls failed to sustain momentum above the 0.9400 barrier. At the start of the American session, EUR/CHF trades near 0.9384, with the Franc gaining ground on the back of upbeat labor market data that reinforced Switzerland’s economic resilience.

Fresh figures released by the Swiss Federal Statistical Office showed that total employment rose to 5.532 million in Q2, compared with 5.512 million in the previous quarter, reflecting a 0.6% annual increase. The data underscores the strength of the Swiss economy, highlighting robust hiring despite signs of global uncertainty. Yet, job vacancy metrics point to a subtle cooling in recruitment trends, with demand slowing in sectors like IT and administration, though healthcare and services continue to absorb labor. Overall, the upbeat headline reinforces confidence in the Franc, providing a fundamental tailwind against the Euro.

On the trade front, the United States and the European Union last week unveiled details of a new Framework for Reciprocal, Fair, and Balanced Trade, under which Washington will apply a uniform 15% tariff on most EU-origin goods, including automobiles, once the bloc enacts legislation to remove barriers on US industrial and agricultural exports.

In parallel, Switzerland has been racing to ease the impact of much steeper US tariffs, currently set at 39%, by preparing a revised offer aimed at securing a reduction to the same 15% level granted to the EU. The Swiss package is expected to include expanded defense procurement commitments and greater energy market access for US suppliers.

Looking ahead, focus will shift to the upcoming data from both sides. In Switzerland, the ZEW Expectations Survey (August) is due on Wednesday, followed by Q2 Gross Domestic Product (GDP) figures on Thursday, which will give a clearer picture of growth momentum. In the Eurozone, Thursday’s docket includes the Economic Sentiment Indicator (August) and the ECB’s Monetary Policy Meeting Accounts, both of which could provide fresh cues on monetary policy direction and investor sentiment.