Slight risk-off tilt in the market ahead of European trading
The yen is leading gains by a slight margin as the market is a bit more defensive to start the day following Apple’s warning about a poorer performance in Q1 2020 – owing to the impact from the coronavirus outbreak.
That just reaffirms the worries in recent weeks over how the virus may disrupt global supply chains and this is one sign that the market may not necessarily be able to ignore completely over the coming days/weeks ahead.
Treasury yields are sitting lower and Asian equities are also softer, setting up the platform for a more cautious start to European trading today.
The aussie and kiwi are marked lower as a result of the softer risk mood, with AUD/USD easing back under 0.6700 with NZD/USD looking towards testing 0.6400 again.
Looking ahead, it is all about how Wall Street will react to the latest developments here in what will be another day of testing the buy-the-dip resolve in the market.
Also, just be mindful that Walmart will be reporting their earnings later today and any mention in the outlook of further supply chain disruptions could lead to the market being more risk averse about the whole situation after the Apple news.