somrat4030
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World economy today
The Australian Dollar and other peers in the commodity currency bloc are under pressure with analysts pointing to fears that China's Covid outbreak is worsening, threatening to slow the economy further.
It is reported a Covid outbreak in Beijing has prompted panic buying amidst fears of a lockdown that would be similar in intensity to that imposed on the residents of Shanghai.
On Monday morning, the National Health Commission said that 47 coronavirus cases had been found in Beijing since Friday.
Cases have been spreading in the community for a week, with multiple rounds of transmission, Pang Xinghuo, deputy director of the Center for Disease Control and Prevention in Beijing, said at a news conference on Sunday.
The Data Today
Today the economic calendar is pretty light, with some countries still being on a bank holiday weekend for the Orthodox Easter. The USD still has the upper hand starting the week, after two strong bullish days at the end of last week. The JPY has stopped declining, with USD/JPY trading below 130, although buyers might resume the uptrend again this week and push above this major level.In the European session, the German Ifo business climate report will be released which is expected to cool off further due to the tensions in the east, after cooling off in March as well. Although, it is not impacting the economy much, as services and manufacturing reports for March showed. In the US session, the Bank of Canada Governor Macklem will hold a speech, but it might not have much impact on the CAD if he doesn’t touch on the future of the monetary policy too heavily.
Elsewhere, Reuters are reporting that the German government is hiking its inflation forecast for this year to 6.1% due to the impact of the war in Ukraine, up from 3.3% it had forecast in January, according to government document seen by Reuters.
Berlin, which is due to present its spring forecasts on Wednesday, sees consumer price growth easing to 2.8% in 2023, the document showed.
On the other hand, Gold extended last week's retracement slide from the vicinity of the $2,000 psychological mark and witnessed follow-through selling for the third successive day on Monday.
This also marked the fourth day of a negative move in the previous five and dragged spot prices to a near one-month low, around the $1,912 region during the early part of the European session. The prospects for a more aggressive policy tightening by the Fed turned out to be a key factor driving flows away from the non-yielding yellow metal.Fed Chair Jerome Powell’s remarks at the International Monetary Fund (IMF) even last Thursday cleared the clouds of uncertainty over the extent of the interest rate hike in May. Powell all but confirmed a 50 bps rate hike at the upcoming policy meeting on May 3-4 and also hinted at consecutive increases this year.
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