China’s NDRC: Economic impact from virus outbreak will be short-term

Dhwani Mehta FXStreet

Lian, Vice Head at China’s National Reforms and Development Commission, the country’s state planner, came out on the wires in the last minutes, announcing additional measures to help combat the negative economic impact of the rapidly-spreading coronavirus.

Government has told medical face mask manufacturers to expand capacity, excess supply will be bought back as govt reserves

Arranged for 10,000 tonnes of frozen pork to be released to Wuhan whenever necessary

There is increasing downward economic impact due to virus outbreak, especially for consumption.

Economic impact from virus outbreak will be short-term.

Fully capable and confident of minimising economic impact from the virus outbreak.

Will make and introduce hedging policies to offset economic impact, help most vulnerable companies.

Separately, China’s Commerce Ministry Official said that they are guiding medium and small businesses to reopen as soon as possible to increase basic services such as food and shopping.

Many exports companies are swiftly recovering manufacturing capacity and local govts are rolling out targeted measures to help exports, the official added.

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 flirts with two-day lows near 1.3180

GBP/USD remains on the back foot in the latter part of Tuesday’s session, sliding to the sub-1.3200 area and challenging weekly lows. Cable’s decline comes as investors assess the political uncertainty in the UK, coupled with softer-than-expected UK PMI data and the better tone in the Greenback.

EUR/USD weakens below 1.1400 on stronger Dollar

EUR/USD adds to Monday’s losses and recedes below the 1.1400 support to clinch fresh 13-month lows in the latter part of Tuesday’s NA session. The pair’s marked sell-off comes on the back of the persistent move higher in th US Dollar, always propped up by rising bets of further tightening by the Fed.

Gold loses ground to near $4,100 as inflation concerns, Fed rate hike bets build

Gold price loses momentum to around $4,100 during the early Asian session on Wednesday. The precious metal extends the decline as traders cement views on the US Federal Reserve hiking interest rates this year.

Australia CPI set to show inflation accelerated again in May

The Australian Bureau of Statistics will publish the high-impact Consumer Price Index for May on Wednesday at 01:30 GMT. Heading into the inflation test, the Australian Dollar is at its lowest level in two months against the US Dollar, having surrendered the 0.7000 psychological mark.

"Rearranging the deckchairs on the Titanic": UK's fiscal crisis outlasts another Prime Minister

Keir Starmer's resignation as the UK Prime Minister comes ten years after the Brexit referendum vote, a coincidence that financial markets have been quick to note. The British Pound trades around 1.3220 against the US Dollar on Thursday.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.