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WuFlu concerns mount of lasting economic......>

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FOREX: WuFlu concerns mount of lasting economic damage to China
-JPY was comfortably the best performer as equities took a considerable leg
lower on reports of the spread of Coronavirus beyond China's borders. JPY calls
were a popular trade, with over $3 in USD/JPY puts trading for every $2 in
calls. CNH held the day's losses into the close, with risk reversals moving to
2020 highs in favour of CNH downside.
-AUD celebrated Australia Day by dropping sharply against all others in G10.
News that China's Zhejiang province is barring companies from returning to work
until February 9th raised concerns of long-lasting economic damage, in turn
dampening demand for Australian commodities exports. AUD/USD hit multi-month
lows of $0.6752.
-CHF a further tailwind as the SNB sight deposits data provided further evidence
that the SNB are refraining from FX interventions after Switzerland were placed
on the US Treasury's manipulation watchlist a few weeks ago.
-US durable goods orders and consumer confidence are the calendar highlights
Tuesday. ECB's Villeroy, Lane and de Cos are all due to speak.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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