OctaFX | OctaFX Forex Broker
Open trading account

Japan likely heading into technical recession due to coronavirus impact – Barclays

According to Barclays analysts led by Tetsufumi Yamakawa in Tokyo, there is an increasing chance the Japanese economy could head in to a technical recession mainly due to the negative impact of the coronavirus (Covid-19).

Key Quotes:

“Japanese real GDP contracted 3.2% on a quarterly basis, a little better than market consensus of -3.8%.

This is all pre-coronavirus and mostly due to domestic tax matters.

There is an increasing risk in first quarter weakness due to the Covid-19 impacts, and if that leads to negative growth, and it could, Japan hits a technical recession with back to back contraction.

Weaker China tourism and a decrease in trade with China is a huge headwind for Japan.

The probability of a recession there has surged to 69%.”    

GBP/USD: Pound supported fiscally

The cable is holding onto gains amid hopes for fiscal stimulus, as investors are shrugging off heightened Brexit rhetoric, Yohay Elam from FXStreet re
Read more Previous

GBP/USD: Double-top to be tested at 1.3070

Monday's four-hour chart is pointing to potential gains for the GBP/USD pair while a double resistance awaits at 1.3070 as FXStreet’s analyst Yohay El
Read more Next
Start livechat