China’s GDP forecast revised down sharply to 2.3% QoQ in Q3 – Goldman Sachs

Dhwani Mehta FXStreet

Analysts at Goldman Sachs made a sharp downward revision to China’s Q3 GDP growth forecast, although predict a bounce in the final quarter of this year.

Key quotes

“We revise down our Q3 real GDP forecast by 3.5pp to 2.3% QoQ vs. 5.8% previously."

“For the full year, GDP forecast lowered to 8.3% vs. 8.6% previous.”

“See a bounce in Q4 though, with 8.5% QoQ vs. previous projection was 5.8%, citing an expected removal of restrictions and stimulatory fiscal and monetary policy to remain in place.”

“See faster issuing of local govt bonds to fund spending and further RRR cut.”

PBOC sets USDCNY reference rate at 6.4840 vs. 6.4845 previous

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.

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hovers around 1.3400 with bearish pressure intact

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.