Slowing Chinese economy sends US dollar higher
EUR/USD 🔽
GBP/USD 🔽
AUD/USD 🔽
USD/CAD 🔼
XAU 🔽
WTI 🔽
Yesterday, the latest Chinese Industrial Production readings recorded a 3.8% growth - falling short of the 4.6% forecast, and raised concerns of a possible recession. On the same day, the Chinese central bank lowered its interest rate from 3.70% to 2.75%, in order to stimulate the economy while dealing with the pandemic.
As such, a weakened global demand saw WTI oil futures fall to $89.41 a barrel. Meanwhile, safe-haven demand is increased with growing recession signs, the US dollar gained much momentum, USD/CAD rose and stabilized at 1.2904, gaining over 100 pips.
The Reserve Bank of Australia has released its meeting minutes this morning, expecting to raise rates even further to “normalize monetary conditions over the months ahead”. The Aussie almost dropped a full 1% against the greenback, declining and slowing at 0.7020, to a closing price of 0.7022.
Euro and Pound both suffered noticeable losses, EUR/USD slid to 1.016, and the GBP/USD pair closed at 1.2054. Gold futures went below the $1,800 level to $1,798.1 an ounce.
More information on Mitrade website.
GBP/USD 🔽
AUD/USD 🔽
USD/CAD 🔼
XAU 🔽
WTI 🔽
Yesterday, the latest Chinese Industrial Production readings recorded a 3.8% growth - falling short of the 4.6% forecast, and raised concerns of a possible recession. On the same day, the Chinese central bank lowered its interest rate from 3.70% to 2.75%, in order to stimulate the economy while dealing with the pandemic.
As such, a weakened global demand saw WTI oil futures fall to $89.41 a barrel. Meanwhile, safe-haven demand is increased with growing recession signs, the US dollar gained much momentum, USD/CAD rose and stabilized at 1.2904, gaining over 100 pips.
The Reserve Bank of Australia has released its meeting minutes this morning, expecting to raise rates even further to “normalize monetary conditions over the months ahead”. The Aussie almost dropped a full 1% against the greenback, declining and slowing at 0.7020, to a closing price of 0.7022.
Euro and Pound both suffered noticeable losses, EUR/USD slid to 1.016, and the GBP/USD pair closed at 1.2054. Gold futures went below the $1,800 level to $1,798.1 an ounce.
More information on Mitrade website.