Earlier today China released its economic forecast and targets for 2019, which are lower than previously estimated. This means that China anticipates a faster slowdown than expected. As a result, Asian markets were a bit more rattled today. Moreover, a slowdown in China tends to reverberate around the world, as virtually all countries rely on trade with China, so we expect that this news will have negative consequences for the global economy.
This also offered a boost to the American dollar, which now acts as a safety asset and benefits from any kind of stress on the financial markets. The dollar index climbed to 96.68. The USD made gains versus the Japanese yen (up to 111.93) and the euro (1.1325).
The European single currency is weakening right now as investors prepare for the ECB policy meeting this Thursday, where a new stimulus package will likely be announced.
The British pound, as well as the Australian, Canadian, and New Zealand dollars are also weakening today.
