Coronavirus FX implications: The good, the static and the bad - Standard Chartered

Anil Panchal FXStreet

Analysts at Standard Chartered came out with the three possible coronavirus scenarios and their Forex implications while mentioning “Our subjective assessment is that current asset market pricing probably lies somewhat closer to the static than good scenarios.”

Key quotes

FX winners (W) and losers (L) under our good scenario where the disease abates:

W: CAD, CNY, MXN, KRW, IDR, RUB

L: USD, CHF, JPY

FX winners (W) and losers (L) under our static scenario of neither major intensification nor elimination:

W: USD, JPY, CHF, MXN

L: KRW, TWD, THB, SGD, MYR, AUD, NZD, EUR, CNY, CAD

FX winners (W) and losers (L) under our bad scenario where the disease intensifies and spreads:

W: JPY, USD

L: KRW, TWD, THB, SGD, MYR, IDR, INR, AUD, NZD, EUR, CNY, CAD

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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