IMF: Economic outlook is gloomier, particularly in Europe – FXStreet
The International Monetary Fund (IMF) said on Monday, in a piece prepared for the summit of G20 leaders in Indonesia, recent high-frequency indicators “confirm that the outlook is gloomier,”, particularly in Europe.
“Recent purchasing manager indices that gauge manufacturing and services activity signaled weakness in most Group of 20 major economies.”
“Economic activity set to contract while inflation remained stubbornly high, citing tightening monetary policy triggered by persistently high and broad-based inflation, weak growth momentum in China and ongoing supply disruptions and food insecurity caused by Russia’s invasion of Ukraine.”
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EURUSD has managed to recover above 1.0300 in the second half of the day on Monday. The cautious market mood, however, allows the US Dollar to hold its ground and limits the pair's upside as investors keep a close eye on comments from central bankers.
GBPUSD has lost its recovery momentum after having climbed above 1.1800 earlier in the day and declined below 1.1750. With Wall Street's main indexes opening deep in negative territory, the US Dollar preserves its strength and forces the pair to stay on the back foot.
The American Dollar recovered some ground on Monday but quickly resumed its decline ahead of the US opening as investors keep moving away from it. Spot gold started the day with a soft tone and fell to an intraday low of $1,753.19 a troy ounce, now trading near a fresh three-month high in the $1,775 price zone.
BTC, along with ETH and XRP, is struggling to maintain a bullish outlook. The crypto market is currently hovering around $800 billion, still substantially below the $1 trillion mark.
The recovery in the stock market continued on Friday, but the moves were more subdued due to the effects of the bond market being closed during Veteran's Day.
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