After a brief surge following a poor open, US equity markets ended in negative territory seeing currency markets sticking to their risk averse tone as investors chew on the implications of the â€˜swine virusâ€™ scare that hit the world like wild fire over the weekend. Despite the geographic scale of the virus reach though, with most of the deaths reported confined in Mexico we expect markets will soon forget the negativity with the unpredictable event risks going forward likely to remain the Q1 corporate results with half the companies listed in Deutsche Borse reporting this week. Today in Asia about the only event risk worth noting are March Retail Sales figures with consensus forecasts calling for an annualized -4.9% read following the previous -5.8% contraction. For currency markets this could serve as a good excuse to further risk aversion plays as we keep a close watch on the lows of the likes of Â EURJPY (125.49), USDJPY (96.33), AUDJPY (68.03), along with Euro (1.30004) and Aussy (0.7066) violations of which could be seen as triggers for even more weakness in the Asian trade.
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