Forex Today: China Q1 GDP High, Asia Stocks Dip

Asia stocks fell Monday morning as Chinese GDP figures for the first quarter came in higher than expected at 4.8%. The Nikkei 225 fell 1.5%, Topix fell 1.22% and the Kospi dipped 0.5%.However, analysts are sounding the alarm over China’s harsh lockdowns imposed across 45 states, warning of serious repercussions for the global economy. China’s second-quarter GDP is expected to fall and the risk of a recession in the world’s second-largest economy is rising.In the Forex market, the US dollar rose against all major currencies last week, as the US Dollar Index (DXY) rose to a near-two-year high just above 100.75 in a continuation of its recent rally. The British pound, however, saw small gains.The Canadian dollar fell 0.35% against the US dollar and the Kiwi fell 1.1%, despite a 50-basis point boost from the Bank of Canada and the Reserve Bank of New Zealand, respectively. The Japanese yen remains the weakest currency.

Oil prices rose in the Asian session due to weak crude production by OPEC. Inflation remains at a 40-year-high, though expectations are more positive. Still, central banks such as the Monetary Authority of Singapore are continuing to tighten monetary policy and raise interest rates, driving demand for safe-haven assets like gold.Gold rose for the second consecutive week by 0.6% to $1,985.49.Today is a bank holiday in the UK and many European countries, so liquidity is expected to be lower than usual.Daily new coronavirus cases globally fell last week for the fourth consecutive week.It is estimated that 64.8% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 6.4% of the global population is known to have contracted the virus at some stage.Total confirmed new coronavirus cases worldwide stand at over 504 million. An estimated 0.078% of the world’s population has died from COVID-19.The rate of new coronavirus infections appears to now be increasing only in Barbados, Bhutan, Canada, China, and Taiwan.