Swiss Franc Slides on Weaker Retail Sales Data
The Swiss Franc came under pressure against major currencies on Tuesday after weaker-than-expected real retail sales data for May 2025 was released. According to the Federal Statistical Office, real retail sales fell by 0.3% year-on-year in May, following a downwardly revised 0.1% increase in April.
The data points to persistent weakness in domestic consumption, a key pillar of the Swiss economy. Analysts had expected a modest rebound, but the actual figures suggest that households remain cautious amid elevated living costs and subdued wage growth.
The SNB has already cut its policy rate twice this year, bringing it to 0.25%, and money markets are pricing in a further reduction to 0.00% by September. The soft retail sales data reinforces the case for additional easing, as the central bank seeks to support economic activity and prevent deflationary pressures.