THE TAKEAWAY: June unemployment remains at 2.7%, May’s rate revised lower -> Swiss economy shows resilience to surrounding crisis -> Franc trading steady around support
Switzerland continues to show signs of a strengthening economy despite its bleak European surroundings. Unemployment remained unchanged at 2.7% in June, as May’s unemployment was revised .3% lower from an initial estimate of 3.0%. The unemployment came in lower than analysts’ expectations for 2.9%, and the seasonally adjusted unemployment was also steady at 2.9%, according to the State Secretariat for Economic Affairs.
The unemployment rate was highest among workers between the ages of 25 to 49 at 2.8%, while 0.1% more women were out of work than men in June at 2.7%.
The Swiss economy continues to display resilience against the Euro debt crisis as unemployment drops and the GDP for Q1 2012 grew the most in over a year. The biggest threat from the European crisis is a false strengthening of the Swiss Franc against the Euro. The SNB continues to maintain a 1.2000 floor in EURCHF trading, which was further justified by June’s increase in deflation.
USDCHF has been trading steady today near the support/resistance line at 0.9770. US Dollar rallied against the Franc on Friday, as risk-correlated currencies sold off on news that less US jobs were added than expected.