Stating the obvious, but let's look at the other potential implications
The poll says that 46/52 strategists viewed that EM currencies are at significant risk of weakening this month as the coronavirus outbreak expands, putting pressure on potential easing measures by policymakers to bolster their respective economies.
Well, we have already seen Thailand take action earlier today and Singapore also suggested something similar as well earlier here.
But in the event of a bigger retreat to the downside in EM currencies, the poll says that the likes of the rand and lira - the usual whipping boys for risk sentiment - will also be at risk and that may promote haven flows into the likes of the yen and franc.
I reckon this is a spot that traders should take note of in case as well. EM Asia currencies will be among the first affected if the coronavirus situation escalates - considering their close ties with China - but that may spill over to risk trades more profoundly as well.
It could a potential factor in keeping the likes of the dollar, yen and franc supported if we do see things get worse with regards to the coronavirus outbreak.
