S&P: Coronavirus will trim a 0.3 percentage point from global GDP growth in 2020

Anil Panchal FXStreet

Global rating giant S&P recently crossed wires, via Reuters, while signaling how the coronavirus epidemic will affect GDP numbers from China and the globe.

Key quotes

Coronavirus will lower Chinese GDP growth by 0.7 percentage point to 5.0% with peak effect in Q1 2020.

Expect a rebound in Chinese GDP in Q3. All lost output (to be) recovered by end-2021.

Coronavirus will trim a 0.3 percentage point from global GDP growth in 2020.

Expect a lag in lifting travel restrictions, return of more normal behavior by Chinese customers and to a lesser extent Asia-Pacific.

FX implications

Even if the downside risks to the Chinese and global economies are well spotted and could weigh on the trade sentiment, expected recovery keeps the market players hopeful. Following the news, USD/JPY rose four pips to the intra-day high of 109.82 whereas Gold stayed unchanged to $1,568.

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 ticks higher to near 1.1800 ahead of flash German inflation data

The EUR/USD pair trades marginally higher to near 1.1810 in the late Asian trading session on Friday, ahead of the release of preliminary inflation data for February from Germany and its major states during the day.

GBP/USD struggles to lure buyers amid UK political drama, BoE easing bias

The GBP/USD pair struggles to build on the overnight modest bounce from the 1.3445 area, or the weekly low, and oscillates in a narrow band during the Asian session on Friday. Spot prices currently trade just below the 1.3500 psychological mark, nearly unchanged for the day, and seem vulnerable to slide further.

Gold awaits acceptance above $5,200 and US PPI data

Gold consolidates previous rebound near $5,200 amid risk-off markets, awaiting US PPI release. The US Dollar eyes a flattish weekly close as dovish Fed outlook and tariff woes outweigh geopolitical risks. Gold yearns for acceptance above $5,200 to resume the uptrend, with a bullish RSI 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.