Safe haven currencies are trading bullish as fears of the coronavirus outbreak and its possible economic impact dominate the risk sentiment in markets, with the Swiss franc soaring close to a three-year high against the Euro. At the time of writing, EUR/CHF is trading at around 1.07.

There is a high level of uncertainty in global markets after a slight calm as the number of cases being reported from China climb higher. Later today, the WHO is set to meet once again to review its decision from last week on whether to term the outbreak as a global health emergency. If this happens, it will worsen the mood in the markets and boost the safe haven appeal of the Swiss franc.

Safe haven currencies like the Japanese yen and the Swiss franc remain in favor as global equities weaken while the US Treasury yield curve witnessed a brief inversion. This has added to tensions in the markets that the epidemic could drive a slowdown in economic growth not just in China but in other countries as well.