Canada: Early Canadian economic data for March looks dreadful – RBC


Analysts at RBC Capital Markets, point out that the latest number from the Canadian economy look dreadful, something expected. They point out the CFIB Business Barometer fell to its lowest level on record in March and the surge in employment insurance claims. 

Key Quotes: 

“Economic reports are starting to trickle out for the period impacted by the ramping up of the social-distancing in response to the Covid-19 outbreak in Canada and abroad.  And those indicators don’t look good. First were reports that almost a million Canadians filed employment insurance claims last week – an increase that in itself could represent a 5 percentage point increase in the unemployment rate.”

“Risks appear to be tilted to the downside relative to the 3.0% GDP contraction we expect in Q1 – and that is ahead of what is almost certain to be a double-digit contraction in Q2.”

“Light at the end of the tunnel? We have to remember these data are tracking the economy’s performance as measures to limit the spread of the virus got underway. Our base case view is that they will be successful in bringing the spread of the virus under control and that activity will resume. Fiscal and monetary policymakers are responding forcefully to help households and businesses bridge the gap to better times. There is still light at the end of the tunnel, but the near-term will be dark days for the economy.”
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

AUD/USD keeps gains above 0.6100 on Australian Trade data

Having regained 0.6100 on a jump in the weekly Australian Consumer COnfidence data, AUD/USD consolidates the spike to 0.6120 after the country's Trade and Job Ads data failed to inspire the bulls. US dollar trades broadly flat amid a better market mood. RBA in focus.

AUD/USD News

USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.

USD/JPY News

Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI snaps three-day winning streak

WTI oil fell by over 8% on Monday, ending a three-day winning streak, which saw prices rise from $19.94 to $29.11. The black gold fell as Saudi Arabia and Russia's decision to delay an emergency meeting to discuss output cuts shifted focus back to oversupply concerns.

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures