Bank of Canada left today the benchmark interest rates steady at 0.25 percent in line with estimates, as the Canadian economy is still recovering from recession.
In assuring the importance of political stability on any country’s economy, the market has been driven the past weeks by several political factors and dynamics. On top of the list is the pound, which dropped for a sixth day versus the dollar amid concern U.K. citizens will struggle to elect a government strong enough to reduce the country’s debt.
U.S. Dollar managed to gain ground against its major counterparts after news showing that inflation remains subdued and below the Fed target rate of 2.0% adding to the U.S. reports showing strength in manufacturing and improvements in consumer spending.
China has begun to suffer from the problem that there is too much demand for its manufactured goods. The New York Times reports that there is a major shortage of workers for factories in the People’s Republic.
Euro declined from yesterday’s high at 1.3625 finding support at 1.3450 along with a decline in the Euro-Zone’s consumer confidence, as forecast, to -17 in February from -16 in January. This is the first step backwards for the indicator which had been on an upwards climb since March 2009’s low of -34.
After increasing predictions that unemployment is improving in the U.S. economy and recording low lying off rates along with lower levels of jobless claims; here appears another blow to this notion that unemployment is improving.
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