Listen to the latest market mood for today’s session.

The S&P500 took a -7.60% loss in yesterday’s trading on the shock of OPEC’s oil deal collapse and the coronavirus spreading. Asian equity markets have recovered overnight on the hope that US President Trump will announce virus-related stimulus packages and the news of a further reduction in China’s additional coronavirus cases. President Xi also visited the epicenter of the Wuhan coronavirus outbreak in a symbolic move showing that China is controlling the virus outbreak.

However, although the risk is ON now, it can turn OFF very quickly. For today’s trading keep an eye on risk tones linked to the coronavirus spread and any OPEC related news.
As long as risk is on expect:

  • Risk on flows: AUD, NZD, and CAD strength. Alongside JPY and CHF weakness
  • Risk-off flows = JPY, CHF, gold buying and AUD, NZD, CAD and oil selling
  • As risk tones are currently positive expect AUDJPY buyers on pullbacks.

Risks to this outlook: Watch out for negative news about the Coronavirus spreading to change this outlook and any falls in equity markets to prompt risk-off tones and invalidate this outlook.