Pay attention to risk-off factors such as coronavirus and Middle East risks! "Key points and event schedule for January 27"

During the weekend, the novel coronavirus is spreading.

This week's focus has become a situation that seems to be attracting attention to the coronavirus.

The USD/JPY opened with a gap down and is breaking below 109 yen.

Will the USD/JPY continue to fall like this?

Or will the decline be limited and a rebound recover the gap?

We are watching closely.

◎ Today's Points of Attention

1) Coronavirus

Last weekend, reports from China stated about 800 infections and about 20 deaths, but as of this morning there are reports of 2,036 infections and 56 deaths, and about 50 infections have been confirmed outside of China.

Chinese authorities are also starting travel restrictions abroad.

In addition, it appears they are taking measures such as closing tourist facilities and postponing the reopening of schools after the Spring Festival.

In such a situation, consumption during the Spring Festival that would normally be expected is expected to drop significantly.

Also, with traffic restrictions centered in Wuhan and other areas, there will be impacts on economic activity.

Whether this problem lasts longer or expands will likely influence the market going forward.

2) Middle East Risk

This morning, reports from some agencies indicate that a rocket struck the U.S. Embassy in Baghdad, Iraq,

and there is information that casualties were being carried by helicopter.

In President Trump's recent press conference, he said there would be no retaliation because there were no American casualties, but if Americans are harmed this time, attention is on whether retaliation will occur.

◎ Today's Event Schedule

Monday, January 27

16:00 EUR Germany Ifo Consumer Confidence Index

18:00 EUR Germany IFO Business Climate Index

Tuesday, January 28

00:00 USD New Home Sales

09:30 AUD NAB Business Confidence Index