Moody's: Coronavirus dents optimism just as global economy showed signs of stabilization

Ross J Burland FXStreet

Moody's assumes that the coronavirus dents optimism just as global economy showed signs of stabilization. The rating agency has revised global growth forecasts down by two-tenths of a percentage point.

Key notes

Coronavirus creates new risks to prospects of incipient stabilisation of global growth this year resulting from truce in US-China trade war.
Expects G-20 economies to collectively grow at annual rate of 2.4% in 2020.
Revised downward GDP growth forecasts for China to 5.2% in 2020, and maintains an expectation of 5.7% growth in 2021.

FX implications

Markets are on alert which likely supports the yen, weighs on AUD/JPY and caps advances in the commodity complex, albeit the technical outlooks are bullish for the CRB index which is breaking higher to test critical resistance.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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