Forex Today: Coronavirus seems less scary, Brexit tensions rise, BOC high on the agenda

Here is what you need to know on Wednesday, January 22:

The coronavirus continues spreading and remains in the spotlight. The report of the first case of the respiratory disease in the US triggered a risk-off atmosphere but China managed to soothe tensions. At a press conference, authorities in the second-largest economy shed light on the situation, saying they are taking measures. USD/JPY and Asian stocks are on the rise.

Brexit: The Telegraph is reporting that the EU will propose the UK worse conditions than it previously offered Canada and Japan. GBP/USD has shrugged off the report and the pound remains bid after Tuesday's release of upbeat wage figures.

The Canadian dollar is set to move later in the day. Consumer prices' figures are forecast to show healthy inflation. It is shortly followed by the Bank of Canada's rate decision. The BOC will likely leave rates unchanged but Governor Stephen Poloz and his colleagues will likely acknowledge the improvement in the global mood. See BOC Preview: Rewards of economic patience.

The Australian dollar remains on the back foot after Westpac Consumer Sentiment dropped by 1.8% and ahead of the all-important jobs report.

EUR/USD: The European Central Bank is also on course to leave rates unchanged in its decision on Thursday and may also provide a more upbeat assessment of the inflation and growth outlooks. The ZEW Economic Sentiment data for January beat expectations. In the meantime, EUR/USD has been struggling to hold onto 1.11. See ECB Preview: Glass half green or a Lagarde drag on EUR/USD? Three scenarios

Cryptocurrencies are stable, with Bitcoin trading above $8,700.