Forex news for Asia trading Friday 31 January 2020



News on the spread of the coronavirus continued to worsen. Markets, however, were in a forgiving mood today with regional stocks higher as were currency 'risk' trades.

On the virus the details are in the bullets above but the major points:

  • More deaths
  • More confirmed cases both in China and globally
  • Japan to rush more drastic measures a week earlier than was originally scheduled
  • The US State Dept. issued a level 4 (the highest) advising citizens not to travel to China
  • Provinces in China have extended the holidays, some as far out as February 10

Data from China today were the official PMIs for January. The surveys were conducted prior to January 20 and thus did not capture the you-know-what-hitting-the-fan events since. Services improved, manufacturing was down 0.2 points. Really, pretty irrelevant - its the February figures that will show the impact of the coronavirus spread.

Currency movement was limited. Yen lost ground, USD/JPY trading above 109.10 at one stage. Cable is flat while EUR/USD has lost a few tics. AUD and Kiwi are also a touch softer, though not by much. The two countries are tightly economically entwined with China and are going to take a hit from the terrible disease impacts there.

Its Brexit day, the UK leave the EU at 2300GMT on January 31, and the 'transition' period will follow through to December 31 2020 (which can be extended by up to two years if the UK and EU agree to this before July 1 2020).

Forex news for Asia trading Friday 31 January 2020 e

A politician who kept his promise.