COB Upbeat About Country’s Economy

By TraderVox.com

Tradervox (Dublin) – Mark Carney, the BoC governor have showed optimism about the country’s economic performance as well as indicating that the global economy is on a positive trend. Speaking in Waterloo, Ontario, the governor said the nation’s economy had performed better than it had been expected due to the favorable global financial markets and external headwinds abated.

In his view, the European debt crisis has improved from acute to chronic after the European Central bank three year loans seems to be averting a possible credit crunch. The successful Greece international bailout and the recent boosting of the region’s firewall power have all added to positive sentiments about the global economy.

Carney further praised the US economy saying that it is still on a modest growth path.  He banked his sentiments on the recent positive data from the US which has been better than expected so far. In addition, Carney pointed out the China’s economy might slow to a still-robust pace.

The COB governor was quick to add that the conditions of the economy in Canada have also improved considerably lowering the degree of slack to less than what the COB had expected.  He pointed out that the first quarter of the year have seen higher rate of growth that reflects on a combination of temporary factors and the improved confidence on better financial conditions.

Most economists are predicting that the Bank of Canada will hold the current interest rates unchanged at least up to the end of this year. The job prospects have also improved with employers adding about 10,500 jobs in March after they retrenched 2,800 workers in the month of February. Some analysts have stated that the positive jobs data may lead to strengthening of the Canadian dollar against the Greenback.

The positive sentiments for the Bank of Canada Governor resulted to a rise in the value of the Canadian dollar against the US dollar. Traders are keeping a close eye on the US data set to be released today.

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