A raft of poor manufacturing PMI data, the much anticipated delay in the Japanese sales tax, two “Brexit friendly” polls and the OECD warning has rallied the YEN and undermined the USD and GBP in particular.
OECD warns of “dismal” global economic outlook, with overall OECD GDP growth seen at 1.8% this year, rising to 2.1% in 2017. The Eurozone forecast was raised to 1.6% this year from 1.4% expected in February. By contrast the U.K. economic forecast was slashed to 1.7% from 2.1% amid renewed Brexit warnings, with the OECD saying that the “outcome of the referendum is a major risk for the economy”, adding that “a vote for Brexit would heighten uncertainty, raise the cost of finance and hamper investment”. It could not only pose a long-term drag on the British economy, but could also set off a global chain reaction. The forecast for the U.S. economy was cut to 1.8% from 2% back in February. Japan is set to grow 0.7% this year and 0.4% next, while Chinese growth is put at 6.5% in 2016 and 6.2% in 2017.
The USDJPY has fallen from north of 111.00 earlier today to six day lows under 109.20, whilst the GBPJPY is currently trading at ten day lows south of 157.50.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.