Global growth cooling down – RBS

Sandeep Kanihama FXStreet Contributor

According to the IMF’s latest World Economic Outlook global growth started to slow in the second half of 2018 and is forecast to slow to 3.3% in 2019 compared to healthy rates of 3.8% and 3.6% respectively in 2017 and 2018, the fastest since 2012, notes the analysis team at the Royal Bank of Scotland.

Key Quotes

“The main culprits are fading US fiscal stimulus, slowing Chinese growth and weaker Eurozone activity. Medium-term global growth is expected to plateau at 3.6%, supported by the rising importance of Indian and Chinese economies, but slow productivity growth and population ageing looks set to keep growth modest in advanced economise. Risks to the global economic outlook are viewed on the downside.”

“When it comes to what drives trade imbalances between countries, new IMF analysis shows that macroeconomic forces – like fiscal policy and the strength of demand relative to supply-side capacity – play a far more important role than tariffs.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.