Moody’s cuts China’s 2024 economic growth forecast, lifts US GDP 2023 expectations

Anil Panchal FXStreet

Global rating agency Moody’s cuts its economic growth forecasts for China, as well as revised up the US Gross Domestic Product (GDP) predictions in its latest report, published late Friday.

"We have raised our growth forecast for the United States' economy to 1.9% in 2023 from 1.1% in our May outlook, acknowledging the strong underlying economic momentum," Moody's said in a report per Reuters.

The rating giant also flagged hardships for the Federal Reserve (Fed) in defending the 2.0% inflation target should the current economic transition prevail while keeping the 1.0% US growth forecasts for 2024.

On the other hand, Moody’s expects China’s economy to grow at the same rate of 5.0% in 2023 as expected earlier. However, the global rating company also downwardly revised its 2024 GDP for China to 4.0% from 4.5%.

In doing so, Moody’s cites low consumer confidence as holding back household spending while adding that the economic and policy uncertainty will continue to weigh on business decisions.

Also read: AUD/USD ignores Aussie government’s push for more wages near 0.6450, focus on RBA, Australia GDP

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.