Bank of France: Q1 GDP to see the deepest quarterly downturn on record

Dhwani Mehta FXStreet

France’s central bank, Bank of France, released its quarterly forecasts for the economy, highlighting that the Q1 GDP is likely to see the deepest quarterly downturn on record.

France's economy likely contracted 6% in the first quarter from the previous three months.

That would be the biggest contraction on a quarterly basis since World War II, surpassing the previous record of -5.3% in the second quarter of 1968 when France was gripped by civil unrest.

A typical week of confinement in march reduced economic activity by 32%.

Estimates each two-week period of confinement reduces annual GDP by 1.5 percentage points.

Industrial capacity utilization fell to record low of 56% in March from 78% in February.

EUR/USD weaker into European open

The common currency ran through fresh on news that the Eurogroup has failed to reach a deal on a coordinated policy response to tackle the coronavirus crisis.

At the time of writing, EUR/USD drops 0.45% to 1.0838, having hit fresh daily lows at 1.0830.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD dips below 1.3350 with bullish momentum losing steam

The British Pound ticks lower against the US Dollar Monday, attempting to close a seven-day rally, as tensions rise again in the Strait of Hormuz, one of the critical points in the peace process between Washington and Tehran. The GBP/USD pair trades near 1.3340 at the time of writing, down from 1.3387 highs last week, although it maintains a near-term bullish trend intact.

EUR/USD drops toward 1.1400 as US Dollar rebounds

EUR/USD pair trades marginally lower, heading toward 1.1400 in the European session on Monday. The pair faces slight selling pressure as the US Dollar gains ground after a negative weekly close. Middle East concerns and the USD/JPY rally support the Greenback.

Gold hangs near daily low amid Hormuz risks; receding Fed hike bets limit losses

Gold recovers slightly from the daily low, albeit it retains the negative bias, and remains below a two-week high touched earlier this Monday. The US Dollar attracts some safe-haven flows amid tensions over the Strait of Hormuz and undermines the bullion. However, receding US Federal Reserve rate hike bets might hold back USD bulls from placing aggressive bets.

Dogecoin recovery stalls amid early signs of whale support

Dogecoin (DOGE) price nears $0.0770, maintaining a broadly consolidative tone for the last three days after Friday’s 4% rebound. The first-ever meme coin is losing retail interest as DOGE derivatives volume drops, while on-chain data shows early signs that large-wallet investors, commonly referred to as whales, are expanding their holdings.

Week ahead – ISM services PMI and Fed Minutes to shake Fed hike bets

The US dollar is finishing the week on the back foot against most of its major counterparts this week, losing the most ground against the kiwi, the franc and the pound. Despite the pullback, investors remained adamant in their view that the Fed may have to press the rate hike button before the turn of the year.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.