The economy of Switzerland has been expanding more due to increased job hiring.

The Swiss franc continues to maintain a robust momentum at the level of 0.88 Swiss francs per US dollar due to the ongoing weakness of the dollar, which remains a significant factor, and inflation rates below the 2% target, further strengthening the Swiss franc. However, Switzerland faces risks related to the continuous decline in foreign currency reserves of the central bank.

The non-agricultural employment in Switzerland increased by 1.9% year-on-year, reaching 5.465 million in the third quarter. This rise in employment was driven by government support, leading to job creation across all sectors. The tourism sector experienced the most significant growth at 6%, resulting in a 2.1% increase in service sector wages.

Investor confidence in Switzerland rose by 8.2 points from the previous month, standing at -29.6 in November, although it still indicates a negative sentiment overall. Investors remain concerned about the economy's slowdown due to higher interest rates, despite signs of economic growth. Some analysts predict that the Swiss National Bank (SNB) might lower interest rates in the latter half of the upcoming year.

Retail sales in Switzerland decreased by 0.1% year-on-year in October, marking the fourth consecutive month of decline. However, there are improving signs in the retail growth trend, as non-food products saw a slight increase while food sales declined.

Switzerland's trade surplus reduced to 3.4 billion Swiss francs in October from 5.0 billion in the previous month, mainly due to a significant decrease in exports by 10.7% monthly, totaling 21.3 billion Swiss francs. This decline was primarily driven by a substantial drop in chemical and pharmaceutical sales. Imports also decreased by 4.9%, totaling 17.9 billion Swiss francs, particularly in the jewelry and vehicle sectors.

The yield on Swiss government 10-year bonds dipped below 1% again, marking one of the lowest returns in nearly three months. This reduction is attributed to lower-than-expected US inflation figures, leading investors to believe that the US Federal Reserve might maintain interest rates in the next meeting. Switzerland's inflation dropped to 1.7%. Additionally, the Swiss National Bank opted to retain its policy rate at 1.75% in its latest meeting, resulting in a continued decline in government bond yields.

Techical analysis data (5H)

Resistance: 0.8769, 0.8785, 0.8811

Support: 0.8728, 0.8703, 0.8687

Source: Investing.com