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In their latest research note, out on Thursday, analysts at the Bank of America/Merrill Lynch revise down the global growth to 2.8% for 2020, the weakest since 2009. The research also expects China to be the weakest since 1990 and gains additional attention as it even ignores the coronavirus impact while citing downside risks.

Key quotes

Risks are still skewed to the downside.

Our forecasts do not include a global pandemic that would basically shut down economic activity in many major cities.

FX implications

Amid the present risk-off mood, any such news adds fears to the trading sentiment and favors the safe-haven. That said, USD/JPY and Gold are both trading around 109.60 and $1,646 by the press time.