USD/CNH back below 7.00 as hopes...>

EMERGING MARKETS: USD/CNH back below 7.00 as hopes mount of near-term cure

- CNH outperformed sharply on multiple reports that a treatment for the

Coronavirus could be in action sooner than expected. USD/CNH made light work of

the 7.00 handle and briefly showed below the 50-dma at 6.9751. The move prompted

risk-on flows across the board and prompted the likes of RUB and ZAR to

outperform.

- A media statement from the Monetary Authority of Singapore prompted USD/SGD to

stage a sharp rally & print a fresh four-month high. The MAS noted that its

policy stance remains unchanged, but "there is sufficient room within the policy

band to accommodate an easing of the Singapore Dollar Nominal Effective Exchange

Rate (S$NEER) in line with the weakening of economic conditions as a result of

the outbreak of the 2019 novel coronavirus." Philippine headlines garnered some

attention after the CB chief stated the sooner the better to cut rates.

- Brazil takes focus Wednesday, with attention turning to the central bank's

SELIC rate decision, as markets look for a 25bps cut to 4.25%. Brazil's services

and composite PMI numbers are also due.