25 November 2016
Trump Shock vs. Swiss Franc Shock
Many of you have heard about it, since Donald Trump won the US presidential election, which was for most of all very surprising, the Swiss Franc received a strong upgrade. At the moment the currency is a little bit above 1.07 euro. Whether and how the Swiss National Bank (SNB) had to intervene will be published by the end of this quarter. At least the SNB had announced that it would step in to prevent a further currency upgrade.
But what does it mean in the end for the Swiss labour market? This is as always hard to predict, but the tendency that many companies outsource certain administrative tasks and IT jobs to other European and worldwide Hotspots are continuing to grow. Many companies are obliged to safe costs and outsourcing routine jobs that aren’t really necessary to be directly located at the headquarters in Switzerland will continue.
One has to observe the further development of the Swiss Franc exchange rate during the next weeks, especially under a new US President Donald Trump, who is famous for his scandals and his worldview that is far away from the common European values. Whether it is the free trade between the USA and Europe, the border fence to Mexico or the relationship to China and Russia. For more information check the Swiss Radio and Television website. Many of Trump’s announcements before the US Presidential election were alarming and the New Year will show in which direction the USA will steer. Based on the experience from the previous years the Swiss Franc will continue to be under high pressure and the SNB has to intervene again. We will follow this topic and keep you updated on our Blog.