Equities lower, but finally finding...........>

FOREX: Equities lower, but finally finding support?

- Another day, another pullback in global equities as US indices now join their

European counterparts in market correction territory. The pullback in risk

appetite continues to follow familiar themes, with markets growing increasingly

cautious of the spread of Coronavirus outside of China's borders. The E-mini S&P

seemed to stem some of the losses, however, as the index bounced off major

uptrendline support at 3002.

- EUR rose sharply, with mass carry trade unwinds possibly behind the move. Long

EMFX positions funded via EUR borrowing could be being closed out as the likes

of BRL, THB, MXN all weaken sharply, forcing markets to buy the EUR and boost

prices back above $1.10. GBP outperformed throughout, with the UK's negotiating

mandate showing the UK government are more than prepared to exit the transition

period on WTO terms absent an agreeable trade deal.

- US MNI Chicago PMI, French and German CPI data, US personal income/spending

and Canadian GDP top the data docket Friday. Speakers include ECB's Weidmann,

BoE's Haldane and Fed's Bullard.