ForexLive Asia FX news wrap: Risk responds to rising coronavirus concerns

Author: Eamonn Sheridan | Category: News

Forex news for Asia trading Tuesday 21 January 2020 


Re the BOJ meeting:


And:

There was little fresh news on the coronavirus today, but news reported Monday was repeated and suddenly taken note of:

We also warned to keep on eye on it .... and it took 24 hours but sellers finally hit 'risk', driving equities, yuan & AUD down and yen, CHF, gold higher.

In China, travel-related stocks were hit (ahead of the upcoming lunar new year migration - virus fears are likely to have at least some impact on travel, eating out and related activities) while healthcare-related stocks rose.  

USD/JPY dropped from circa 110.20 to lows around 109.90 before stabilising somewhat. AUD/USD lost 35 or so points also while USD/CNH gained 300+ from its session lows.


Forex news for Asia trading Tuesday 21 January 2020 eWhile on the coronavirus, news broke after all this that a suspected case was reported in Australia. 

In other news it was BOJ policy statement day - no change in settings was anno9unced, as expected. The outlook report raised the forecast for GDP ahead (the government stimulus package announced in December was expected to have this impact) but offsetting this positivity was the lowering of projections for CPI ahead, thus keeping the BOJ well and truly in massive easing mode. Yen impact from the BOJ announcement was minimal.

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