The franc headed for a record weekly gain before data economists say will show job growth in the U.S. slowed last month, spurring demand for the perceived safety of the Swiss currency. The franc strengthened against all 16 major peers tracked by Bloomberg for a third day as stocks slumped. A Labor Department report may show U.S. job growth slowed in August with non-farm payrolls climbing 68,000 last month, from a 117,000 increase in July, according to the median estimate of 86 economists surveyed by Bloomberg. “The U.S. employment backdrop is pretty subdued and we may end up seeing some low payroll figures today,” said Jeremy Stretch, executive director of foreign exchange strategy at Canadian Imperial Bank of commerce in London. “And it’s been a week of weakness on the euro side of the equation. Investors have been moving from the single currency to the safest of safe havens.” The franc appreciated 2.3 percent against the euro to 1.1088 at 10:08 a.m. in London. It has gained 5.2 percent against the euro, the biggest weekly gain since the introduction of the single currency in 1999. The franc rose 2.2 percent to 77.82 centimes against the dollar. The franc also strengthened versus the greenback after the New York Times, citing people familiar with the matter, reported the U.S. federal government may sue banks for misrepresenting the quality of securities backed by home loans. Switzerland’s currency has strengthened 13.3 percent this year, the best performer among a basket of 10 developed-market currencies, according to Bloomberg Correlation-Weighted Currency Indexes. Swiss government bonds rose, pushing down the yield on the 10-year security four basis points to 1.03 percent. Five-year yields also dropped four basis points, to 0.53 percent. To contact the writer on the story: Ed Ballard in London at eballard2@bloomberg.net To contact the editor responsible for this story: Keith Campbell at dtilles@bloomberg.net

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