The Euro slipped against the Swiss Franc on Monday as France’s political turmoil continues to unsettle the currency. The EUR/CHF pair briefly dropped to its lowest level since September 10 before stabilizing near 0.9320, down about 0.20% on the day.
Political Uncertainty Pressures the Euro
The Euro is facing broad weakness across major currencies after French Prime Minister Sébastien Lecornu resigned abruptly just 27 days after taking office. His resignation, announced hours after unveiling a new cabinet, highlights the escalating political crisis in France. This leaves President Emmanuel Macron with difficult choices: appoint a sixth prime minister in less than two years or dissolve the National Assembly and call for new parliamentary elections.
Eurozone Retail Sales Show Modest Growth
On the economic front, Eurozone Retail Sales rose by a modest 0.1% month-on-month in August, matching forecasts and improving from a revised 0.4% decline in July. However, annual sales growth slowed significantly to 1.0%, down from 2.1% in July, signaling weakening consumer demand across the region.
ECB Signals Stability but Cautions Vigilance
Adding to the cautious mood, European Central Bank (ECB) Governing Council member José Luis Escrivá commented that inflation expectations remain anchored at 2%, and current interest rates are appropriate, describing the Eurozone’s situation as “comfortable.” However, he stressed the importance of being ready to adjust policy if economic conditions shift. His remarks helped the Euro limit its losses, though uncertainty continues to weigh on the market.
Swiss Franc Supported by Safe-Haven Flows
Meanwhile, Swiss data showed a slight increase in the seasonally adjusted unemployment rate to 3.0% in September, up from 2.9% in August. Despite this minor cooling in the labor market, the Swiss Franc remains supported by safe-haven demand amid Europe’s ongoing political uncertainty.
Currency Performance Snapshot
Today, the Euro was strongest against the Japanese Yen but declined modestly against other major currencies including the US Dollar and Swiss Franc.
| Currency Pair | Change (%) |
|---|---|
| EUR/JPY | +0.05% |
| EUR/USD | -0.26% |
| EUR/CHF | -0.20% |
Summary:
EUR/CHF traded lower as political instability in France deepens with the sudden resignation of PM Lecornu, overshadowing the modest positive retail sales data from the Eurozone. Meanwhile, cautious ECB comments and a steady Swiss labor market support the Swiss Franc as investors seek safe havens amid European uncertainties.
