Is the coronavirus outbreak going to get worse before it gets better?
And how is it going to impact the Chinese and global economy? Those are questions that the market still needs answers on as we start the new week.
That is leaving risk assets trading a bit more choppily so far today as we see USD/JPY continuing to bounce off support from its 100-hour moving average (red line) with gains capped at around 109.90-00 for now.
Major currencies continue to keep more narrow, although we are seeing the pound recover some ground a little. Meanwhile, European equities are slightly lower still but there isn't any major hints of risk aversion or risk-off in the market just yet.
Treasury yields are a little bit more subdued while US futures are down by ~0.1%, so that's not helping traders find any sort of direction in trading this morning.
We'll have to wait and see what Wall Street decides or if there will be any more major headlines surrounding the coronavirus situation to tip the scales one way or another.
