Early price action across the G10 FX space....>

FOREX: Early price action across the G10 FX space suggests that the escalation

in Sino-U.S. tensions has been digested and participants await further signals,

while looking at the coronavirus situation with relative optimism. The yen has

been offered and underperforms all of its G10 peers as we type, with the

greenback also struggling for momentum. Scandinavian FX outperform in the

basket, with NZD also holding up well. 

- The yuan provides an obvious point of interest today, after USD/CNH tested

record highs yesterday. The PBoC is about to announce its daily fixing of the

USD/CNY mid-point shortly and we will see if they will be willing to continue

leaning lightly against yuan weakness.

- USD/KRW popped higher as the BoK cut its benchmark interest rate by 25bp to

0.50%, in line with expectations. No surprises here and the reaction move was

very limited.

- Australian capex, flash German CPI, EZ sentiment gauges and Swedish retail

sales take focus from here, with Fed's Williams & Harker, ECB's Villeroy & BoE's

Saunders due to speak.