Risk is keeping steady as we begin European trading

WCRS 19-02

USD/JPY is holding just above 110.00 for now as the risk mood is faring much better on the new day, with the market taking heart in slowing coronavirus case numbers outside of the Hubei province as reported by China earlier.

The pessimism from yesterday is ebbing a little and as a result, risk is slightly better but not overwhelmingly positive by any means for now.

The aussie is keeping mild gains near 0.6700 against the dollar, with large expiries set to roll off at the figure level later in the day. So, that may limit gains in the session ahead.

Meanwhile, US and European futures are sitting a little higher and that should help keep risk steadier to start the session. Treasury yields are near flat levels, so there isn't much to really suggest a stronger tilt towards being risk-on for now.

Looking ahead, the pound will also be a key focus ahead of inflation data but so far cable is rather calm around 1.3000 with EUR/GBP just off 0.8300 levels.