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POLAND

NBP Gatnar Favors Symbolic 15bps Hike

GOLD

Test the session high

CROSS ASSET

Risk-On Fulled By US Infra Spend

FOREX
FOREX: Mixed session for risk leaves JPY on top
- After bumping higher throughout Asia-Pacific trade, JPY held the bulk of
Tuesday's gains into the close, as bond markets across core Europe and the US
had a firm session. Softer Treasury yields and an overall flatter yield curve
initially sapped strength out of the USD, but much of this was reversed into the
close.
- Fears surrounding the spread of Coronavirus out of China's Hubei province
dragged on Asia-Pac FX and exposed stocks, allowing the likes of American
Airlines and Delta Airlines to drop as much as 3.5%. This prevented the S&P500
from staging much of a test on the alltime highs printed Friday, but there was
little sign of any major retracement.
- GBP also fared well on favourable jobs numbers, which trimmed the probability
of a January BoE rate cut. Attention now turns to Friday's key PMI data.
- Canadian inflation numbers, US existing home sales and the Bank of Canada rate
decision take focus Wednesday. Speeches are also scheduled from BoE's Carney (on
climate, not policy) and BoC's Poloz.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com