The Swiss Franc was firmer against the Euro and other major peers on Monday following the release of unemployment data which showed no major change however the Franc looks likely to come under pressure as the markets digest the outcome of a referendum that could potentially damage relations with the European Union.
The Franc found support from continued demand for safe haven assets.
A referendum held over the weekend over whether the Swiss government should curb immigration was won by a slim margin by Eurosceptics and now puts the Swiss government in the difficult position of following the will of its people at the ire of its EU neighbours.
The Alpine nation has had open borders with the EU for 12 years and has seen the nation’s population rise, with one in four Swiss citizens being an immigrant. The rapid growth in population and influx of foreigners has been a cause for concern for many citizens.
“The quick population growth led to anxiety about social change, and people felt Switzerland was losing its identity. It’s a protest vote, and an expression of scepsis. The EU will likely take a hard-line as the immigration issue has now been raised to symbolic levels,” said a senior lecturer at the University of Zurich.
The votes result has raised concerns that the Swiss economy could be impacted and with already strained relations with the EU uncertainty as to the consequences of the vote are causing some worry. Around 500 people in Zurich protested after the result with some throwing rocks at buildings and causing several thousands of Francs worth of damage.
The Swiss unemployment data showed that the nation’s jobless rate remained steady at a non-seasonally adjusted level of 3.5%.
Current Swiss Franc (CHF) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Swiss Franc,
,US Dollar,1.1149 ,
Swiss Franc,, Pound Sterling,0.6802 ,
Swiss Franc,,Euro,0.8178,
Euro,,Swiss Franc,1.2227 ,
Pound Sterling,,Swiss Franc,1.4694 ,
[/table]
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