Sentiment has improved amid hopes that the....>

FOREX: Sentiment has improved amid hopes that the spread of Wuhan coronavirus

can be contained (their basis is somewhat questionable as of yet) & its economic

impact mitigated. In addition, China decided to halve additional tariffs on

$75bn worth of U.S. imports from Feb 14. The yuan appreciated in spite of a

higher than exp. fixing of the USD/CNY mid-point from the PBoC.

- Safe haven currencies lost some ground, to the benefit of high-beta FX. The

Aussie outperformed its G10 peers, drawing some support from an above-forecast

quarterly retail sales print, even as the monthly reading missed consensus.

USD/JPY threatens to break above Y110.00, but is yet to test the round figure.

GBP underperformed in the wake of yesterday's BBG report re: EU plans to unwind

concessions to the City of London made in the bloc's financial rulebook.

- Most Asian EMFX firmed up in tandem with risk appetite. KRW led gains in the

space, with USD/KRW falling the most in a month. SGD & THB swam against the

tide, after y'day's dovish comments from the MAS & a rate cut from the BoT.

- Under the microscope today are German factory orders and speeches from Fed's

Kaplan, ECB's Lagarde & her colleague Villeroy.