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No country was immune to the economic effects of the coronavirus, but Switzerland looks like it’s doing better than what the market had anticipated. Its gross domestic product unsurprisingly reported a fall for the second quarter of 2020 when compared to the previous quarter and the previous year. However, markets were inclined to applaud when the declines were shallower than they anticipated. For the second quarter of this year, Switzerland reported a 9.3% economic decline against the 0.7% decline seen last year. It came in better than Wall Street estimates of a 9.6% decline. In a quarterly comparison, the figure fell by 8.32% from -2.5% seen in the first quarter. Again, the figure was better than the market consensus at -8.2%. Meanwhile, Australia is having a hard time recovering its jobs data especially in Victoria, which recently saw a 2.8% decline in jobs since early July, a figure that significantly affects the rest of its economy.
The United States is finally going to report its gross domestic product data for the second quarter, and investors are ready for another wave of greenback sell-out because of it. The biggest economy in the world is about to fuel worries with a colossal 32.5% GDP decline for the three months ending June. This is going to be much lower than its previous loss of 5% seen in the first quarter. Moreover, initial jobless claims in the US are still expected to remain at 1 million this week. This is lower than the previous week, but not by a mile, since it had risen to the million-mark right after it inched into the 900 thousand territory the week beforehand. Markets are now waiting for an inflation announcement from the Federal Open Market Committee’s President Esther George, which will determine the future of the US economy by the end of this year. These alone will determine the greenback’s fall against the Swedish krone near-term.
New Zealand’s Prime Minister Jacinda Ardern is determined to completely eliminate coronavirus infections in the country. Arden initiated another nationwide lockdown after 102 fresh infections, which found economists questioning the full lockdowns’ effectivity and potential damage to its economy. The kiwi central bank or the Reserve Bank of New Zealand warned that it might have to push its inflation rates even further down this year to help revive further damages brought by the pandemic. It had expanded its large scale asset purchase last week to as much as NZ$100 billion, which was way up from the previous NZ$60 million budget previously. Due to these worries in the forex market, its status as a safe haven while Asian countries like China are benefitting from economic fallout from Western countries won’t do much. The kiwi dollar is still projected to decrease against its Aussie counterpart near-term.
Confidence in the Turkish lira fell by 20% in favor of dollars and gold. Inflation is currently at 11.8%, surprising both investors and locals with more panic-selling across the board. This came after the Turkish economy was projected to contract by more than 10 percent during the second quarter. The contraction would result in a 15 percent decline on an annualized basis. Turkey had previously resorted to higher taxes, cheap loans, and preventing firms from firing workers during the pandemic to help stimulate its economy. However, markets are still expecting its economy to shrink by 1.5 in 2020. Meanwhile, Italy’s Industrial New Orders saw an increase for June when compared to the previous year. Against June 2019, the figure had increased to -11.8%. Although the figure is much lower than what was seen the previous month, its yearly increase is bound to impress investors. France’s businesses are also more confident this month at 93.