Currencies and equities traded sharply higher today with the Dow soaring more than 400 points intraday. Based on this rally and the strong performance in USD/JPY, it would be easy to assume that coronavirus fears are easing and investors are moving on. However, we have not even seen the beginning of the impact of the virus on economic data and the only thing masking the pain is Chinese stimulus. On Monday, Chinese banks were urged to provide liquidity, the government sent out guidances to limit short selling, cut interest rates by 10bp, and injected $175 billion into the banking system. Overnight, the central bank ... (full story)