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.
Risk-off dynamics accelerate as Chinese coronavirus worsen
Risk-off sentiment is spreading as investors react to the news from China that the coronavirus is now transmitting human-to-human resurfacing images of SARS from 2003.
FX Update: Limited but clear contagion into FX from corona virus
Markets are digesting the worrisome news that human-to-human transmission has been confirmed in the new corona virus outbreak in China just ahead of the intensive travel season over the Chinese New Year period. As usual, the transmission into FX is fairly muted relative to the gyrations in risky assets, though EM is rather offered as CNY strength has faded sharply.