Fitch Ratings, in its latest global economic outlook report, revised down its global GDP estimate for 2020.
Key takeaways
“See a huge contraction for the global economy.
Global GDP forecast now revised to -3.2% vs. -1.7% back in April.
Most of the contraction will be in Q2.
We have revised down our growth forecasts for several markets including the US, Italy, the UK, Germany, Japan, Brazil, Mexico, Nigeria, Egypt, Indonesia, the Philippines, Turkey and Poland.
Forecast a recovery of 3.6% in 2021.”
Market reaction
Markets are witnessing a cautious optimism, with the Asian markets flashing green, taking the positive lead from Wall Street overnight.
However, the US stock futures and Treasury yields are falling, suggesting Asian traders are not buying into the overnight optimism about the Moderna vaccine amid trade tensions.
The US dollar index is off the multi-day lows, aiding the tepid bounce in USD/JPY towards 107.50 while AUD/USD is consolidating the gains below 0.6550.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Latest Forex News
Editors’ Picks
AUD/USD fuelled 0.2% by strong PMI Composite in early Asia
AUD is up on the day so far as early data gives the bulls a head start. Early Asia has been kind to Aussie bulls with the price of the currency extending its late New York gains with a robust Construction PMI report, solidly above the 50.0 expansion level, arriving at 54.2.
USD/JPY probes resistance at 104.94 as Japan's core CPI drops
USD/JPY tested former support-turned-hurdle at 104.94 (Oct. 2 low) a few minutes ago as Japan's consumer prices slipped for the second straight month in September. The resistance has held intact, forcing the currency pair back to 104.80.
Gold: Bears seeking a continuation below key daily support
Gold prices are back under pressure and below a critical trendline on the daily chart. The swing trading opportunities are caught up in the wash of volatility. A day trading strategy could offer an opportunity if price obeys market structure.
2020 US Elections: The final presidential debate
The second and final presidential debate between Donald Trump and Joe Biden promises to be a political event of the first magnitude. Mr. Biden leads i
WTI bulls keep the fuell buring into Wall Street close
West Texas Intermediate crude oil is higher on the day, although has run into resistance and started to consolidate.