Gold higher as OECD revises GDP forecast, EUR/USD higher ahead of ECB meeting [Video]
|Gold higher, as OECD revises GDP forecast
Gold was trading higher on Wednesday, as markets reacted to the OECD’s decision to revise its GDP forecast.
On Wednesday, the group forecasted that global GDP will come in at 3% this year, which is lower than the 4.5% projection in December.
The Organisation for Economic Cooperation and Development said it opted to adjust its growth forecast, as a result of the Russia/Ukraine war.
As such, they stated that, “The invasion of Ukraine, along with shutdowns in major cities and ports in China due to the zero-COVID policy, has generated a new set of adverse shocks”.
XAUUSD rose by $15 in today’s session.
EUR/USD higher ahead of ECB meeting
The EUR/USD rate was also higher during today’s session, as traders prepared for Thursday’s ECB rate decision.
On Thursday, the European Central Bank will hold its monthly policy meeting, with inflation set to be a key topic.
Despite historical rises in consumer prices, the bank has opted to keep rates unchanged, with tomorrow expected to be no different.
Markets have projected the bank will keep rates as is, with the expectation that they will be lifted later this year.
EUR/USD rose to a high of 1.0748 on the news.
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