Archives of “January 30, 2020” day

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Offshore Chinese yuan falls to fresh six-week low against the dollar

  
Analysis, Forex

USD/CNH rises to the highest level since 20 December amid virus concerns

USD/CNH D1 30-01

When China sneezes, the rest of the world catches a cold – in this case, quite literally. As coronavirus concerns continue to grip markets, it is putting pressure on the offshore yuan as it falls to its weakest levels against the dollar since 20 December.
USD/CNH is closing back in on the 7.00 threshold and a break of that level may yet set off further risk aversion in markets – more specifically, emerging markets in Asia.
As Asian markets continue to be battered by fears surrounding the situation and the economic backlash set to come as a result of China being impacted, the dollar reigns as king in the region – and that may yet continue for quite some time yet.

Nikkei 225 closes lower by 1.72% at 22,977.75

  
Analysis, Global Indices
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The Nikkei falls back below the 23,000 mark

Nikkei 30-01

Fears surrounding the coronavirus outbreak continue to reverberate across markets and risk trades are largely suffering as a result. The fact that Facebook earnings wasn’t good enough – slower growth and profits guidance – only adds oil to the risk-off fire today.

US futures are down by 0.5% while Treasury yields are marked lower across the board following a sharp drop yesterday. 10-year yields are now at 1.568%, down by 1.5 bps.
As a result of the softer risk mood, USD/JPY is sitting around 108.92 currently – with focus turning to the 100-day moving average @ 108.75 once again.

Here are all the changes in the FOMC statement (blink and you’ll miss it)

  
  Analysis
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This is how the statement from the Federal Open Market Committee changed in January from December.

Sheesh. Not much. What there is is slightly more dovish (but its a bit of a hair-split isn’t it?)
This is how the statement from the Federal Open Market Committee changed in January from December. 

Death toll in China from the coronavirus is now at least 169

  
  Analysis
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Hubei province has reported a further 37 deaths

Via Hubei’s province Health Authority (figures as of the end of the day Jan 29):
  • total confirmed cases in Hubei is 4,586 ( up 1,032 from the previous day)
  • 162 deaths
  •  4,334 hospitalized cases, of which 277 are in critical condition
Wuhan is the city at the centre of the outbreak, a city in Hubei province.
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