Markets still hope for virus cure - After.....>

FOREX: Markets still hope for virus cure

- After an exuberant morning, in which risk assets rallied on reports a

treatment for Coronavirus could be formulated sooner-than-expected, markets

barely seemed to mind when the WHO stated that there are "no known therapeutics"

that can treat the virus. This kept the likes of AUD and CNH at the top of the

board while haven currencies fell. JPY and the CHF were among the poorest

performers. EUR also traded poorly alongside the uptick in risk appetite,

leading some to suspect that use of the single currency as a funder for carry

trades could be back on the agenda after recent reversals.

- GBP started the session well, gaining on the back of a decent beat for

services PMI data, but this was swiftly reversed after Bloomberg reported that

the EU could re-write MIFID rules in a snub to the post-Brexit City of London by

removing all concessions made to The City during its drafting. This saw GBP/USD

stutter back below $1.30 before staging a tepid recovery.

- Australian retail sales, India's rate decision, German factory orders and US

weekly jobless claims take focus Thursday. BoJ's Masai & ECB's Lagarde speak.