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IMF Downgrades Outlook on Growth in 2020

Published January 21, 2020

The NZD holds just above 0.66 against the USD this morning as markets await key data due later in the week.

IMF Trims Global Economic Outlook

The International Monetary Fund trimmed back its 2020 global economic growth forecast to 3.3 percent from 3.4 percent estimated previously in October. The global economy expanded by 2.9% in 2019, its slowest pace since the global financial crisis, the slowdown was largely driven by trade wars weighing on exports and investments. The report, however, contains a sense of modest hope, noting that risks are “less skewed” toward negative outcomes.

Data Ahead

NZ global dairy trade auctions will be released this evening, with 2 out of the last 3 auctions resulting in a price contraction and will likely be watched for further direction on the NZD. Employment data from the UK will be the key focus tonight, with any miss in expectations likely to increase the chances of a BOE rate cut when they next meet January 30th.

Today is expected to remain quiet with US markets closed due to the Martin Luther King Jr Day public holiday.