Riskier currencies have breathed a sigh of....>

FOREX: Riskier currencies have breathed a sigh of relief amid the lack of

disappointments in Chinese official PMI data. The non-manufacturing gauge was

even better than expected, with rate of expansion accelerating to 54.1 from

53.5. It was accompanied by an inline reading for the manufacturing sector.

China's Statistics Bureau commented that the survey was taken before Jan 20,

which means that the impact of coronavirus & LNY holidays does not show through.

USD/CNH has slipped into negative territory in reaction to the data.

- The PMIs have temporarily overshadowed coronavirus concerns, which upheld the

cautious mood earlier in the session. In G10 FX, JPY & CHF have been offered

after the release. AUD has erased its earlier losses, while an uptick in oil

prices has elevated NOK & CAD to the top of the pile.

- USD/KRW gapped higher at the open only to wipe out its initial gains, owing to

a strong reading of South Korean industrial output & Chinese data.

- U.S. personal income/spending data, U. of Mich. Survey & MNI Chicago PMI,

Norwegian unemployment, as well as Canadian, French, Italian & EZ GDPs are the

remaining data highlights. ECB's Panetta, Schnabel & Mersch will speak.