US dollarThe risk-off flows returned this Friday, as mounting China coronavirus death toll and new confirmed cases globally spooked investors and boosted the demand for the safe-havens at the expense of the risk assets. Meanwhile, a typical pre-US Payrolls caution trading also dented the appeal of the higher-yielding assets, as markets ignored the recent US-China trade optimism.
The yen drew bids, as the US equity futures, Treasury yields and Asian equities fell back into losses amid risk-aversion. Subsequently, USD/JPY traded with bearish bias while below the 110 level. Meanwhile, the EUR/USD pair attempted a tepid bounce amid a broad-based US dollar retreat. But the further upside appears capped ahead of the key German macro news. GBP/USD traded with small gains below 1.2950 amid EU-UK trade deal optimism and upbeat UK retail trade survey.
On commodity markets, oil prices pared gains and traded flat amid worries over the China coronavirus impact on global growth. Gold futures on Comex also trade little changed below $1,570 levels.
The EUR macro calendar kicked-off with the key German data flow, including the Industrial Production, Trade Balance and Current Account data, all of which dropped in at 07:00 GMT.
Next of relevance remains the US and Canadian January Employment data, due at 13:30 GMT, which will set the tone across the fx space for the coming days, with the US Non-Farm Payrolls data to headline. Later, oil traders will await the Baker Hughes US Oil Rigs Count data, lined up for release at 18:00 GMT.