Markets are risk-off amid coronavirus fears
It is all about the risk mood as we get things going in the European morning session, as markets are leaning towards being more risk averse amid heightened fears surrounding the new coronavirus outbreak situation.
The yen is leading gains in the currencies space while gold and bonds have also gained strongly from the offset today. Meanwhile, risk trades are getting pummeled with the aussie and kiwi weaker - alongside stocks, oil, commodities.
For now, USD/JPY keeps just above 109.00 but price had earlier moved close to testing the 100-day moving average @ 108.72. That will be a key level - alongside the 200-day moving average @ 108.50 - to keep an eye on in the current risk environment.
As risk will be a key factor in trading this week, just be wary that we will see key tech earnings in Wall Street this week as well. That may have some say in influencing the risk mood over the next few days.
Looking ahead, just be wary that later on in the week we will have key individual themes playing out with the FOMC meeting, Australian jobs report, and BOE meeting still to come.
