Morning Forex Fundamental: CHF

Morning Forex Fundamental: CHF

"So far, 2013 has been in phase with the forecasts. Growth is still the order of the day, but on a more measured basis than in previous years. In other words, the rate of advance is returning to normal, enabling the results to be consolidated at a high level.' - The Federation of the Swiss Watch Industry

Amid gloomy news from Swiss economy the only bright spot for the Alpine country remains its labour market, which shows a stable pace of hiring since February 2012. A report from the Federal Statistical Office showed that despite a fall in the secondary sector, the number of people in the workforce increased in the second quarter. The number of employed people reached 4.166 million, up from 4.152 million in the preceding quarter, offsetting analysts' expectations for a 4.140 million. Even though, the employment in secondary sector plunged 0.4%, this decline was offset by a sharp improvement in the tertiary sector, where employment increased by 2.3%. Despite the improvement, companies are worried about the economic outlook, therefore, the employment outlook indicator turned lower, while difficulty in hiring personnel fell. On August 8 the State Secretariat for Economic Affairs posted official report, showing the overall unemployment rate remained unchanged in July, staying at 3.2%, the highest since 2010.

While the SNB is trying to do everything it can in order to avoid further appreciation of the Swiss Franc, the nation's exporters are still suffering, posing certain challenges for the economy. Earlier this month data showed that consumption indicator dropped, machinery product sales plunged an annual 1.2% in the first half, while exports declined 1.9% in July.