During London trade on Wednesday, the US Dollar moved away from the recently struck 2-week trough as FX traders’ expectations of an imminent Fed rate cut were reduced. The outbreak of the Coronavirus continues to weigh on sentiment, however, especially after the Centers for 
Disease Control in Atlanta warned that the virus was likely to spread to the United States, contrary to the assurances issued by the White House. The Federal Reserve’s Vice Chairman said yesterday that the central bank would monitor any potential impact the virus might have on the US economy but that it was too early to gauge if a shift in monetary policy would be helpful.
As of 11:03 am in London, the USD/JPY was trading higher at 110.4210 Yen, up 0.20%, off the session peak of 110.584 Yen. The GBP/USD was trading lower at $1.2926, down 0.5493% and off the earlier low of $1.29233. The EUR/USD pair was trading at $1.0887, up 0.0643%; the pair has ranged from a low of $1.08621 while the high was at $1.08982.
Later today, market attention will turn to the Eurozone where the president of the European Central Bank, Christine Lagarde, is due to speak when she meets with a German official in Wiesbaden, Germany. Analysts are still waiting for the ECB to officially address the issue of the Coronavirus and the impact it could have on the Eurozone’s economy. They point out that given the current ultra dovish monetary policy there is little left in the ECB’s “toolbox” to remedy the possible repercussions of a major viral outbreak. More than 300 people have been reported with the virus in Italy, resulting in 11 deaths; as recently as yesterday, there have been the reports of infected individuals in Croatia, Austria and Switzerland, all of whom had recently traveled to Italy.