The Chinese stocks 9% slump weighed heavily on its Asian peers, as the Chinese traders returned after the Lunar New Year break. Markets fretted that the coronavirus epidemic fears could likely hit demand in the world’s second-largest economy. However, the impact was not widely felt, in the face of the focused policy measures implemented by the Chinese authorities to combat the negative economic impact of the virus spread. The Chinese central bank slashed the reverse repo rates while injected 1.2 trillion-yuan ($174 billion) worth of liquidity into the markets via reverse repo operations. Further, the rebound in the US Treasury yields and Wall Street futures, following Friday’s slump, also helped the US dollar recover ground across the board while stabilizing the risk sentiment. Therefore, gold prices corrected to $1580 levels from near a four-week high. Across the G10 fx space, USD/JPY regained the 108.50 level following a drop to near multi-week lows. The Antipodeans ignored the downbeat Chinese Caixin Manufacturing PMI and Industrial Profits data, as AUD/USD jumped back above 0.6700 while the Kiwi rose 0.20% to test 0.6475. Also, the 1% slump in the Chinese yuan failed to dent the sentiment around the OZ currencies. The Canadian dollar was under pressure vs. the greenback despite stabilizing oil prices. Meanwhile, the pound was the biggest loser in Asia, as GBP/USD fell back towards 1.3150 amid resurgent Hard Brexit fears. The weekend reports cited that the UK PM Johnson is prepared to walk away from EU negotiations if he doesn’t get what he wants. The EUR/USD pair traded weaker below 1.1100 ahead of the key Eurozone PMI data. Main Topics in Asia OPEC+ to meet February 4-5 to assess impact of coronavirus – Reuters Boris Johnson is prepared to walk away from EU negotiations NZ Treasury: GDP growth to slow this year, coronavirus a new risk to economy Chinese Caixin Manufacturing PMI (Jan) 51.1 vs 51.5 prior China stocks crash nearly 9% as full markets return, the slump already priced-in? China’s Industrial Profits plunge 6.3% YoY in Dec USD/CNH at 2020 high as China re-opens with weak data, rate cuts amid coronavirus China’s NDRC: Economic impact from virus outbreak will be short-term ECB’s Lane: Central bank is on track toward its 2% inflation goal – Bloomberg PBOC Adviser Ma: The chance of a rate cut on Feb 20 has increased significantly China’s NHC: Coronavirus death toll rises to 361, confirmed cases 17,205 Sources: China’s securities regulator urged mutual fund managers not to sell shares unless .. – Reuters Indonesia’s annualized CPI disappoints with 2.68% S. Korean FinMin Hong vows to address financial market volatility amid virus outbreak Key Focus Ahead We have a busy start to a fresh week ahead, with the final Manufacturing PMI reports from across the Euro area economies and the UK to headline. The Turkish central bank Interest Rate Decision, due at 1100 GMT, will be also eyed. The NA docket also offers the Manufacturing numbers from both the US and Canada among other minority reports. The US ISM Manufacturing PMI for January lined up for release at 1500 GMT will hog the limelight in the American trading. The speech by the German Buba President Weidmann’s speech will be closely heard, as the coronavirus updates will continue to remain the main market driver. EUR/USD snaps four-week losing streak EUR/USD has snapped its longest weekly losing streak in 14 months. The pair remains trapped in a bearish channel. The breakout will likely remain elusive if the US ISM Manufacturing PMI (Jan), due at 14:45 GMT, betters estimates by a big margin. GBP/USD: Brexit fears question buyers ahead of UK data GBP/USD snaps two-day winning streak as the US dollar benefits from broad risk-off. The UK PM Johnson to renew fears of no-deal Brexit, PMI data could clear BOE’s hawkish stance. Though, updates concerning China’s coronavirus could keep the driver’s seat. US Manufacturing PMI Preview: Trade takes back seat to the virus Sentiment expected to be in contraction for the sixth month. Business investment fell in December after two positive months. China’s trade deal improvement will be delayed by the health crisis. Chart Of The Week: AUD/USD sold to critical support ahead of RBA AUD/USD bears have been relentless and support structures prove fragile. Bulls will look for a discount prior to further downside. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US: Low risks of a technical recession in 2020 – UOB FX Street 2 years The Chinese stocks 9% slump weighed heavily on its Asian peers, as the Chinese traders returned after the Lunar New Year break. Markets fretted that the coronavirus epidemic fears could likely hit demand in the world’s second-largest economy. However, the impact was not widely felt, in the face of the focused policy measures implemented by the Chinese authorities to combat the negative economic impact of the virus spread. The Chinese central bank slashed the reverse repo rates while injected 1.2 trillion-yuan ($174 billion) worth of liquidity into the markets via reverse repo operations. 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