US dollar

The risk mood is the main market driver the European morning session, as markets are leaning towards being more risk averse amid heightened fears surrounding the new coronavirus outbreak situation.

The yen is leading gains in the currencies space while gold and bonds have also gained strongly from the offset today. Meanwhile, risk trades are getting pummelled such as stocks, oil, commodities.

For now, USD/JPY keeps just above 109.00 but price had earlier moved close to testing the 100-day moving average of 108.72. EUR/USD trades better bid above 1.1000 awaiting the German IFO, while GBP/USD bounces back towards 1.3100 with eyes on BOE and Brexit.

Crude prices fell more than 2% to multi-month lows on Monday as the rising number of cases of the new coronavirus in China and city lockdowns had deepened concerns over oil demand.Looking ahead, in the week key individual themes playing out with the FOMC meeting, Australian jobs report, and BOE meeting still to come.

In the European morning, there isn’t much on the data docket to shake things up so expect markets to continue reacting to the coronavirus situation. The German IFO survey for January is lined up for release at 09:00 GMT.

In the NA session, the release of New Home Sales at 15:00 GMT, will be the only major macro data of the session.