G10 FX space is back from extremes but the....>

FOREX: G10 FX space is back from extremes but the risk-off theme still clearly

dominates price action. Worrying updates on Wuhan coronavirus have piled up over

the weekend and into the Asia-Pac session, inspiring participants to look for

safety. The counts of deaths & confirmed infections in China have continued to

increase, prompting the authorities to extend Lunar New Year holidays. JPY leads

gains in the G10 basket, with USD/JPY gapping lower at the open & operating

below the Y109.00 mark at typing. CHF is also bid on the back of risk aversion.

- The Antipodeans underperform all of their G10 peers. The local press reported

that a fifth person in Australia may be infected with coronavirus. AUD/USD

tested the $0.6800 figure to the downside, but has failed to sink below so far.

- Defying the "death cross" formation, USD/CNH has surged past the CNH6.95 mark.

- Highlighted risk-off moves have occurred as liquidity is sapped by market

holidays in China, Australia, South Korea, Hong Kong, Singapore, Taiwan and

Malaysia & a regional holiday in Auckland, New Zealand.

- German Ifo Survey and U.S. new home sales take focus from here.