Market sentiment took a strong hit overnight, after a new strain of coronavirus in China resulted in the death of 4 people, and raised fears of a further spread as million of Chinese are preparing to travel for the Lunar New Year Holiday. In Japan, the BoJ stood pat, but upgraded its growth forecasts, signaling no urgency for further stimulus at the moment. In the UK, GBP-traders are likely to turn attention to the UK employment data for November.
Equities Slide, Safe-Havens Rise on Fears of Virus Spread
The dollar traded mixed against the other G10 currencies on Monday and during the Asian morning Tuesday. It gained versus NOK, NZD, AUD and SEK in that order, while it underperformed against JPY, GBP and slightly against CAD. The greenback was found virtually unchanged versus EUR and CHF.
The weakening of the commodity-linked currencies Aussie and Kiwi and the strengthening of the safe-haven yen suggest a risk-off trading environment. Indeed, EU indices pulled...
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