Canada Surpasses the U.S.

The Bank of Canada has raised its key interest rate to 1 percent from 0.75 percent but says there is still U.S. weakness. This sent the Canadian dollar roaring higher by 4 tenth of a cent.

BMO capital economist Doug Porter commented that “The overall impression I’m left with is they’re a little bit hawkish or bent on further rate hikes than I had been expecting,” but Porter further commentated that there may not be anymore raise hikes for the rest of the year.

Canada is the first nation in the G7 to raise interest rate which demonstrates the strength of its economy relative to its peers. However, Canada's economy slowed down in Q2 from Q1 from 5.8 percent to just 2 percent.

Allan Edwards co-CEO of The Markets Are Open commented "The U.S. economy remains weak and this is putting pressure on Canada" Edwards continued saying "I now expect the recovery to be more gradual in Canada I am not as bullish as before" he told reporters. Edwards finished "though the economy is still in the wake of a recovery, the stock market is at levels that still do not make sense, and I expect a stock market to begin another rally."