The International Monetary Fund has increased its forecasted global GDP growth for the first time in over one year, seeing every G7 economy growing in 2023 except the UK, which is forecast to be in recession. However, stock markets have continued to weaken after falling over the past day.
In the Forex market, the US Dollar has continued to gain strength as the Dollar Index seems to have made a bullish reversal from the support level at 101.07. We may be seeing a medium-term bullish reversal against the long-term bearish trend in the greenback. The US Dollar and the Japanese Yen are the strongest major currencies while the Australian Dollar is currently the weakest.The EUR/USD currency pair remains within a valid long-term bullish trend after reaching within just a few pips short of $1.09 some days ago, so it is likely we will see higher prices there over the coming days.
There will be releases today of Canadian GDP data, US CB Consumer Confidence data, and New Zealand Unemployment data.
Daily confirmed new global coronavirus cases decreased last week for the sixth consecutive week, but there are serious doubts over the veracity of China’s official statistics, which almost certainly dramatically understate new coronavirus cases.
Total confirmed new coronavirus cases worldwide stand at over 675 million with an average case fatality rate of 1.00%. Daily new confirmed cases have fallen to a low level not seen since the summer of 2020.
Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.