(15 JULY 2019)DAILY MARKET BRIEF 2：Safe-haven CHF in demand despite China’s upbeat data

There seems to be certain market contradictions happening right now after Chinese data beat estimates this morning. Asian equities are in green territory, with Hong Kong Hang Seng, China mainland CSI 300 and Nikkei 225 rising up to +0.29%, +0.41% and +0.20% respectively, thus pointing to a rising session for equities. Meanwhile the foreign exchange points to similar ends, with trade-reliant currencies grinding higher and safe-haven JPY flat, unlike CHF, which appears to gain traction as shown by EUR/CHF and USD/CHF pairs.

Both USD/CHF and EUR/CHF supports at 0.972 (24/06/2019 low) and 1.10795 (24/06/2019 low) could well be broken if current trend is maintained. There is currently no clear signs of Swiss National Bank market intervention yet, but that could well change if a clear appreciation trend emerges despite optimistic views on the market.