Macro Dragon: Low Touch...
Macro Dragon = Daily Cross-Asset Global Views
In today's tight Macro Dragon, we tune into the latest on the risk-off that we saw over Tuesday in regards to the SARs like coronavirus. We had some big moves including close to -3% on HK Equity index & a +0.61% move in USDCNH to 6.91. We also check in on a few other things that are bubbling in the Macro Dragon's kitchen including: USDJPY & whether or not upside is still intact post the c. -0.30% move o/n, the latest from the active TAAL volcano in the Philippines (our USDPHP long continues to grind higher for the wrong reasons - yet we take what we can!) as well as today's Bank of Canada rate decision. KVP reckons its a risk-on day, so long as there is no larger fall-out from the coronavirus.
FX Breakout Monitor: USD losing momentum, GBP trying to gear up
The negative sentiment from the worrisome virus outbreak in China has done little to spark volatility. The US dollar is doing what it has done best over the last eighteen months by not developing further momentum after teasing important upside breakout levels. Sterling has shown fresh signs of life today on strong UK jobs numbers.