Markets becalmed as China fatality toll.......>

FOREX: Markets becalmed as China fatality toll drops on double-counting

- Continental equities look a little more sanguine early Friday despite the

negative close on Wall Street. Asia-Pac stock markets generally traded

positively although Japan underperformed following Thursday's JPY rally. Plenty

of focus remains on China's Coronavirus count, with China confirming 5,090 new

cases & 121 additional deaths, while reducing reported total death toll to

account for double-counting.

- EUR remains acutely weak, with the EUR/USD rate hitting fresh cycle and

multi-year lows. German GDP data will have done little to reassure following a

mixed report. Options markets continue to factor in further downside in the

single currency, with the 1m risk reversals contract retreating to new 2020 lows

Friday morning. CAD sits firmer thanks to the more stable oil price, with Brent

back above $56/bbl.

- US import/export price indices and January retail sales data take the focus

this afternoon, followed by the prelim read of Uni. of Michigan consumer

confidence. Speeches are due from Fed's Mester.