Low and slow Coronacount keeps equities.......>

FOREX: Low and slow Coronacount keeps equities supported

- While the overall number of cases of Coronavirus reported in Hubei province

grew over the weekend, the pace of growth slowed sharply, helping lending a

supporting hand to equity markets overnight. This was particularly evident in

China, where the CSI300 closed with gains of over 2%. Much of this sentiment has

fed through into European and US futures, which trade with pretty broad-based

gains.

- As a result, the JPY sits slightly lower, helping USD/JPY narrow the gap with

Y110 and AUD/USD recover off the Friday lows. Commodities also look slightly

healthier, with CAD recovering modestly. Implied vols are suitably lower for

much of DMFX as the mood improves.

- A market holiday in the US will restrict liquidity and volumes Monday, which

may struggle to recover for the rest of the week given school holidays in the US

and UK.

- There are no material data releases Monday, keeping focus on comments from ECB

chief economist Lane later today.