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Happy ECB day, everyone! Hope you're all doing well as we get things going in the session ahead. It's been a decent start to the day with markets leaning more defensive as we see a bit of a plunge in Chinese stocks, nearly 3% losses among major indices.

This is coming ahead of the Chinese New Year holiday period from 24 January to 30 January in China, with concerns surrounding the new coronavirus outbreak playing a role too.

Virus or not, there is certainly some room for caution among global equities - particularly after Wall Street continued to chase all-time highs in the aftermath of the US-China trade deal signing last week. Yes, that was just one week ago (feels like ages).

So, the question today is whether or not the drag in Chinese equities and the yuan will spill over to US markets later and weigh further on the already softer risk mood today.

Despite the yen and bonds keeping higher, gold remains near unchanged levels as price action continues to hug the recent narrow range around $1,540 to $1,563. It's still not the right time for the commodity to chase a move just yet it seems.

Looking ahead, we'll also get the first ECB meeting decision of the year but no surprises are expected so instead pay attention to Christine Lagarde's press conference for any potential moves in the euro currency later today.

What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.