The AUD is the strongest and the JPY is the weakest as NA traders enter for the day


The USD is mostly lower

The markets are still taking the coronavirus news in stride and as a result, have seen modest risk on flows. The AUD is the strongest and the JPY and CHF are the weakest on flights out of the safety of those currencies.  

Below are the most recent data from China on infected and deaths released last night:

  • Feb 1: 14,380 (number of dead across the country 304)
  • Feb 2: 17,205 (number of deaths 361)
  • Feb 3: 20,438 (death toll 425)
  • Feb 4: 24,324 total cases, 490 deaths
  • Feb 5: 28,018 (death toll up by 73, now 563)
  • Feb 6: 31,161 (up 3,143), death toll is 636 (up 73)
  • Feb 7: 34,564. Deaths now at 722
  • Feb 8: 37,198, Death toll 811.
  • Feb 9: 40,171. Death toll 908.
  • Feb 10: 42,638. Death toll 1016.

A senior medical advisor said that the the coronavirus infections may be over in April, while the World Health Organization warned of a “very grave” global threat.

The moves today also come ahead of the semiannual testimony titled the Monetary Policy Report from Fed Chair Powell.   Today he will speak before the House Financial Services Committee, in Washington DC. The testimony begins at 10 AM ET/1500 GMT.

The USD is mostly lower

The price action is limited, however, at the start of the session. The GBPUSD has moved 47 pips and the biggest mover of the majors. The EURUSD is barely moved at 15 pips range for the entire day so far.  

The ranges and changes for the major currency pairs

In the US stock market the futures are implying a higher openings for the major indices. Both the NASDAQ and the S&P closed at record levels yesterday with the NASDAQ surging over 1%. Today the futures are implying 

  • Dow up 115 points 
  • S&P up 12.56 points 
  • NASDAQ up 48 points 
Iin the European equity market stocks of also rebounded. EU sources are out saying that the coronavirus will only have a marginal impact on the economy.  Him him Yesterday most of the indices declined and have a little catch-up to the gains from the US afternoon trading:
  • German DAX, +0.8%
  • France’s CAC, +0.4%
  • UK’s FTSE 100, +0.8%
  • Spain’s Ibex, +0.4%
  • Italy’s FTSE MIB, +0.63%

In the US debt market yields are up by about 1 to 2 basis points reversing the declines from yesterday’s trade.

US yields are higher

In the European debt market, yields are also higher in the 1 to 2 basis point range.

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