The yen and franc lead gains, while the aussie and kiwi lag behind
Fears surrounding the coronavirus outbreak are continuing to grip markets, with the uncertainty about how this is all going to impact the Chinese and global economy still weighing on risk trades as investors prefer haven flows for the time being.
The dollar is mixed but is keeping in a narrow range against most major currencies, with the aussie and kiwi being the notable losers amid the softer risk mood.
Asian equities are once again beaten down while US futures are lower by ~0.5%, not helped by sluggish Facebook earnings after the close yesterday. That is sort of weighing on sentiment as well with tech stocks unable to push higher on the news.
Meanwhile, Treasuries continue to stay bid after a solid session yesterday. 10-year yields are down by 1.5 bps to 1.568% currently and that is keeping the yen underpinned as we look towards the start of the European morning.
Looking ahead, it is once again all about risk and how markets will react to the heightened fears surrounding the coronavirus outbreak situation.
The WHO will meet later today to consider issuing a global alarm over the virus, so just be mindful that the fear-mongering there could lead to deeper risk aversion on the day.
Otherwise, the spotlight will also rest on the pound with the BOE meeting decision set to come later at 1200 GMT – in what is a coin flip of a decision still.