New Zealand Treasury forecast at least 10% contraction in Q2 2020 GDP

Anil Panchal FXStreet

Early Wednesday morning in Asia, news crossed wires that New Zealand Treasury, Grant Robertson, anticipates, while speaking in the Parliament, at least 10% contraction in the second quarter (Q2) GDP YoY figures. it was further mentioned by the Finance Minister that the unemployment could also spike to double digits while crossing 6.7% flashed after the great financial crisis.

FX implications

In a reaction to the news, NZD/USD stepped back from 0.5975 to 0.5967. The reason for the lack of moves could be traced to the mixed activity numbers from Australia, New Zealand’s largest customer. Additionally, the US dollar also consolidates its latest gains and seems to favor the kiwi pair.

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 weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.