BOC rate hikes demonstrate the health of the Canadian Economy (Daniel Johnson)

GBP EUR Exchange Rate: Weekly Review December 4th  

Two Interest Rate Hikes in a row from the BOC

The Canadian economy  has been going from strength to strength of late, with strong economic data in nearly all areas. Oil is Canada’s primary export and with the OPEC deal restraining over supply this bodes well for Canada. The  Bank of Canada (BOC) has now raised interest rates consecutively, this is extremely rare and shows the strength of the Canadian economy.

BOE rate hike rumours based on misinterpreted data?

We have seen  Sterling strengthen over the Canadian Dollar of late due to the potential of an interest hike in the UK. Mark Carney, head of the Bank of England (BOE) hinted toward the potential of a rate hike in the next couple of months. This caused investor confidence to grow although I am of the opinion things are not as rosy as the BOE are making out. Inflation and unemployment are being given as justification for a potential hike, but I am of the opinion this data is not necessarily positive. Inflation is only positive for an economy if average wage growth is moving at a similar pace, it isn’t it dropped to 2.1% in the most recent release something it seems the BOE are sweeping under the carpet.  If products and services are becoming more expensive, but consumers are making less money they become reluctant to spend which can create serious problems for the economy in question.

Unemployment is being branded as the best since the 70’s, but don’t necessarily believe the hype, the large increase could well b attributed to zero hour contracts.

If you have a currency requirement I would be happy to assist. You need to have an experienced broker on board in order to take advantage of rates when a brief spike occurs, especially in the current climate. If you have a currency provider already in place I am prepared to perform a comparison against them. It will take minutes and could potentially save you hundreds or even thousands of pounds. I can be contacted at  [email protected].