ForexLive European FX news wrap: Markets tepid as virus concerns persist
Forex news from the European morning session - 10 February 2020
- Hundreds of Chinese firms reportedly seeking billions in loans to soften impact of virus outbreak
- UK confirms four more cases of the new coronavirus
- Eurozone February Sentix investor confidence 5.2 vs 5.9 expected
- PBOC adviser suggests authorities to consider lowering benchmark interest rates
- Switzerland January CPI +0.2% vs +0.2% y/y expected
- UK declares new coronavirus as a serious, imminent threat to public health
- Japan cruise ship operator confirms 66 more coronavirus infections
- ECB's de Guindos: ECB still has policy tools if needed
- GBP and AUD lead, USD and CHF lag on the day
- European equities a little softer; E-minis flat
- US 10-year yields down 1.2 bps to 1.57%
- Gold up 0.1% to $1,572.10
- WTI down 0.3% to $50.17
- Bitcoin up 0.7% to $9,815
There is a lack of direction to kick start the week as the market grapples with the coronavirus outbreak and what it could entail for the Chinese and global economy in general.
Risk traded more tepidly and that is resulting in light movements in European trading so far.
European equities are keeping mildly softer while US futures are near flat levels, meanwhile Treasury yields are slightly lower but nothing to suggest any major risk aversion.
As such, USD/JPY kept more flat around 109.70-85 throughout the session but the aussie is keeping mild gains since Asia Pacific trading as AUD/USD holds around 0.6690-00.
The pound is a decent mover on the session with cable slipping to 1.2875 early on before recovering to post session highs of 1.2936, bouncing off the 100-day moving average.
Other than that, markets remain tepid for the most part as traders and investors continue to pick their brains at the coronavirus outbreak and how it will develop in the days ahead.
Let's see if the buy-the-dip mentality will once again play out when Wall St enters later today.