All eyes were on China as onshore markets.....>

FOREX: All eyes were on China as onshore markets re-opened after Lunar New Year

holidays, absorbing the escalation in Wuhan coronavirus concerns. Chinese

policymakers deployed measures to ease broad-based market sell-off, but USD/yuan

surged nonetheless. The yuan took a fresh hit around the time when the PBoC cut

interest rates charged on its reverse repo operations. Both USD/CNY & USD/CNH

strengthened past the 7.0 mark, although CNH outperformed USD in early trade.

- Cued by the yuan, Asian EMFX sank in tandem. USD/KRW printed its best levels

in four months, seemingly completing a longer-term double bottom pattern. Bank

Indonesia conducted a "triple intervention" to stabilise IDR.

- Meanwhile, China's supportive measures encouraged some risk-on flows within

the G10 FX space. The Antipodeans topped the pile, while JPY was limited.

- GBP underperformed from the off as weekend press reports suggested that PM

Johnson is poised to declare readiness to walk away from trade talks with the EU

if terms offered by Brussels are deemed unsatisfactory.

- A slew of m'fing PMI from across the world take focus today. Central bank

speaker slate features ECB's Lagarde & de Guindos, as well as Fed's Bostic.