US GDP to contract 34% in Q2 2020 – Goldman Sachs

Anil Panchal FXStreet

While revising its forecast for the US real GDP, Goldman Sachs recently mentioned, “We now forecast real GDP growth of -9% in Q1 and -34% in Q2 in q/q annualized terms.” It’s worth mentioning that the bank earlier estimated -6.0% and -24.00% reductions in the economic output figures. Further, the bank anticipates the unemployment rate rising to 15% by midyear.

Market implications

The news exerts additional downside pressure on the market’s risk-tone following US President Donald Trump’s expectations of tough times. While portraying the sentiment, S&P 500 Futures drop near 0.90% to 2,540 by the press time.

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.

GBP/USD weakens below 1.3550 on renewed US strikes on Iran

EUR/USD extends gains towards 1.1500 after US data, Warsh's testimony

Gold pulls back toward $4,000 as inflation fears offset USD weakness

Bitcoin bottom may be taking shape as selling pressure eases — Glassnode

Bitcoin's recent recovery may mark the early stages of a bottoming process as macroeconomic data continues to boost investor confidence, according to a Glassnode report on Wednesday. Bitcoin outperformed both US and European equities following the US CPI inflation report on Tuesday, recovering strongly after weeks of trading sideways near recent lows.

South Korean Won edges up against US Dollar as BoK hikes interest rates

The South Korean Won reflects broader strength against the US Dollar as the Bank of Korea delivers its first interest rate hike in three-and-a-half years, raising rates by 25 basis points to 2.75%. The USD/KRW pair gives back slight early gains and ticks down to near 1,484.68 in the Asian trade on Thursday.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.