Risk goes into reverse as Corona case count...>

FOREX: Risk goes into reverse as Corona case count spikes

- Changes in the methodology for the daily Coronavirus count in Hubei province,

China resulted in a sharp spike in new cases, as 14,840 were added to the tally.

The headlines led to risk going into retreat, supporting the JPY and haven FX

throughout the European open. This turnaround in fortunes saw USD/JPY pull well

back below the Y110 handle and keeps EUR/CHF under pressure and hitting fresh

multi-year lows.

- Coronavirus headlines as well as commentary from the IEA, who forecast the

first global oil demand drop in a decade, have sagged energy markets from the

off, prompting a 1% downtick in Brent crude. This has filtered through into

commodity-tied FX, with NOK and CAD sitting at the bottom of the G10 pile.

EUR/NOK trades either side of the 10.0519 100-dma.

- US inflation numbers for January and weekly jobless claims numbers take focus

from here, with CPI seen broadly inline with last month's reading at 0.2% m/m

and 2.4% y/y. Speeches are also due from ECB's Lane & Panetta, Fed's Kaplan &

Williams and hearings for Trump's Fed nominees Shelton and Waller.