Focus on the novel coronavirus (state of emergency, travel ban, border closure) and policy interest rate! Important events of the week you need to know in 1 minute by Okachanman (week of March 16)
This week's economic indicators! There are two major events that Okachanman is watching
1) The novel coronavirus (state of emergency, travel ban, border closures)
2) Policy interest rate
Old FX Blog
(Below is a transcript of the video)
Hello everyone, this is Okachanman. As Okachanman's highlights for this week, I have two points. The first is the novel coronavirus, and the second is the policy interest rate.
Recently, the coronavirus is being described as a once-in-a-decade market event, a COVID shock. I think this week too the market may move significantly due to information related to the coronavirus.
Among the words I am paying attention to are "state of emergency" and "travel ban" and "border closures." I think these kinds of words will draw attention. Right now, more than the number of infections or deaths, which countries declare a state of emergency, close borders, or ban travel, and implement policies that affect the economy are drawing attention. When these words are announced, stock prices tend to fall.
In response, many countries are lowering policy rates to cope. This week, four central banks—the FOMC, the Bank of Japan, the Swiss National Bank, and the Central Bank of Turkey—are scheduled to announce policy rates. All of them on the 19th, at 3:00, 12:00, 17:30, 20:00, and 20:00 at night, respectively. The announcements from these central banks are worth watching.
Right now, it's just after 4 a.m. Monday, and the Reserve Bank of New Zealand cut rates aggressively earlier, a 0.75 percentage point cut. Other central banks may also announce emergency rate cuts this week, so I want to stay alert.
So this week, I think the focus will again be on the coronavirus. With volatility high, I want to prioritize risk management, aim to avoid losses, and focus on staying alive when trading.
Let's do our best this week as well. This was Okachanman.
