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The Hungarian economy is one of many countries that experienced its biggest gross domestic slumps in quarterly comparisons in history. With a 13.6% decline seen in the quarter ending June when compared to the year prior, as well as a 14.5% collapse in quarterly performance, the figure is its worst to date by a high margin. Even though Hungary is in recovery from the economic effects of the coronavirus, locals and investors are worried that it will be much slower than they had expected. That said, it’s good news for bullish investors in the EURHUF exchange. The eurozone also experienced quarterly lows for most of its participating countries, but consumer confidence in the bloc are all projected to keep their current levels intact. Notably, Italy experienced one of its deadliest days, but markets are being considerably optimistic over the recovery of other countries included in the eurozone thanks to swift re-openings.
The Hungarian economy might have seen a double-digit decline in gross domestic product for the second quarter of this year, which is down by 13.6% on an annualized basis may we add, the US economy doesn’t look any better. Atlanta’s former Federal President Dennis Lockhart admitted that the US economy might very well be experiencing a double-dip in economy sooner or later. He suggested that if the country fails to contain the virus within the year, it might yet again experience the near-32% drop seen earlier this week. Initial jobless claim numbers also disappointed markets this week when it reported that 1,006 thousand more adults filed for unemployment benefits instead of the 1,000 thousand amount it had initially expected. Continuing jobless claims were also seen at a higher rate than expected, which came in at 14,535 thousand, disappointing market consensus of 14,250 thousand and down from the 14,548 thousand seen the week prior.
The Bank of Mexico released minutes of its latest meeting with an announcement to cut its benchmark interest rates by 50 basis points with the conclusion that the only way to help its recovery is to depend on the coronavirus and the development of its vaccine. After bottoming to its lowest levels since May, the USDMXN will be on track for an upcoming surge, exposing the Mexican peso’s potential fall to an even farther market. Mexico had just recorded a double-digit contraction in gross domestic product for the second quarter at almost eighteen percent, and economists believe that it could go low by more than thirteen percent this year. Last year, it had witnessed a comparably timid decline of 3 percent, which wasn’t even taking account of the informal economy that involved where half of Mexicans work that can’t be measured by formal statistics. Despite the US’ economic decline, the greenback is still on track to benefit.
Russian President Vladimir Putin is looking forward to economic recovery since it had announced an 8 percent decline in its GDP during the second quarter. Putin claims that the worst is over for Russia, and that the country’s key macroeconomic indicators are already stabilizing recently. Forecasts for the end-year economic decline have also been altered from 8 percent by the end of this year to five to six percent. Notably, this was right around its previous records. Moreover, Russia has continued to boost its bullion and foreign currency reserves at $590 billion. He claims that this creates an “additional safety cushion,” which assured investors that it will be able to muffle much of potential declines in the next quarter. Meanwhile, in the US, former Federal Reserve officials confirmed that its economy might witness a W-shaped economic growth after it had slumped by 31 percent in the previous quarter ending June 30.