During today’s trading, the financial markets will be interested the ecZonomic agenda data, the results of which usually brings about changes in price movements. Therefore, caution should be taken until the results of these actual data are taken in order to make the right trading decisions. Today's economic news are:
Latest Coronavirus Update: Worldwide, there are currently a total of 1.96 million confirmed COVID-19 cases with a total death toll of at least 125,476 people, according to data compiled by Johns Hopkins University. At least 471,191 people have recovered. The United States of America still has the largest number of cases, with a total of 589,048 cases and highest death toll of at 23,134 people. New York State is still the epicenter of the outbreak, with at least 195,000 cases reported. The death toll in the state rose to 10,834 after the death of 778 others on Monday. In Spain, there are 172,541 cases and 18,056 deaths, while in Italy there are 162,488 cases and 21,067 deaths. In France, there are 137,887 cases and 14,986 deaths. There are 130,434 cases in Germany, but only 3,220 deaths. The United Kingdom has 94,823 cases and 12,125 deaths. It is reported that China, where the disease first broke out late last year, had 83,306 cases and 3,345 deaths, although some questioned the accuracy of these figures.
U.S. Retail Sales: In the U.S., retail sales fell by -0.5% month over month in February after the upward adjusting the reading for the previous month to a 0.6% increase in January. The reading for February missed analysts' expectations for a 0.2% increase in retail sales. This is the biggest drop in retail sales since December 2018. Consumers have cut spending on a wide range of products such as cars, parts, furniture, electronics, appliances, building materials, health and personal care products, and clothing. Sales decreased at petrol stations, restaurants, bars and general merchandise stores. Outlook for 2020: Sales Decline by -8.0%.
Core US Retail Sales: These are sales numbers excluding cars, and it fell 0.4 percent on a monthly basis in February, after a revised increase of 0.6 percent in January. Analysts had expected core retail sales to increase 0.2 percent in February. Predictions for March 2020: Core retail sales are expected to drop by - 5.0%.
Bank of Canada Monetary Policy Report: The Canadian Central Bank issues the monetary policy report on a quarterly basis. The report provides valuable insights about the central bank's view on the main factors of inflation and the economic conditions that shape the direction of monetary policy and affect interest rate decisions.
Canadian interest rate statement: The Bank of Canada issues the interest rate statement 8 times a year. The central bank uses it as a tool to communicate with investors regarding monetary policy. The price statement provides details on the outcome of the members’ interest rate decision. In addition, it provides commentary on the economic conditions that affected their decision. More importantly, the report discusses the country's economic outlook and provides clues for future decisions.
Canadian interest rate: At the emergency meeting held on March 27, the Bank of Canada decided to reduce the interest rate by 50 basis points to 0.25 per cent. Earlier, on March 13, the Canadian Central Bank cut the benchmark interest rate by 50 basis points to 0.75 percent, from a level of 1.25 percent. Borrowing costs were reduced to support the financial system and the economy amid the Coronavirus pandemic. The Monetary Policy Committee also developed a program to purchase commercial notes to restore the main short-term financing source for companies. Policy makers said that the acquisition of government securities in the secondary market will continue until the economy recovers. In addition, they indicated that economic and financial conditions are closely monitored in coordination with the central banks and financial authorities of the other G-7 countries, and that further measures will be taken if necessary.
Outlook for April 2020: Interest rate at 0.25 percent.
The Bank of Canada Press Conference: The Bank of Canada Governor will hold a press conference 75 minutes after the interest rate announcement to discuss the details. There are two parts to the press conference. In the first part, the governor will read a statement prepared in advance. In the second part, he answers questions from the press. Since the questions can lead to unwritten answers, large fluctuations in the market can be expected.