Weekly News Watch 17

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I do not know about you, but for me this week seemed to pass by in an instant. We have seen some interesting events throughout the week.

Canadian Imperial Bank of Commerce (CIBC) reported that Canada’s domestic upturn should counter some of the drag that the rising loonie poses on corporate earnings.

The loonie has been rising constantly causing people to wonder whether the recovery seen will not reverse as it comes closer to parity with the US dollar.

The Bank of Canada reported that it will be keeping its key policy rates at the low of 0.25, however there is no information given as to whether it will move off its simulative stance in the near future.

The Bank of Canada has downgraded its forecast for the economy, and once again it is due to loonie soaring higher over the past few weeks.

In the middle of the week, we saw the loonie trading at 97 cents US, however once the Bank of Canada issued its warning, the loonie dropped 2 cents US before close.

In the past, we have see the government have surpluses, however this year we are seeing a deficit, and the value reported is only half of what is expected to come.

Federal debt has already reached $23.7 billion and it is forecasted to reach $56 billion for 2009 – 2010.

Just last year we had a surplus of $1.1 billion, but even then that was only half the amount that should have been received, however with the low interest rates, there was nothing that could be done about it.

With all of this said, the week ahead should prove interesting as it we are in the final week of October.

Related Posts

• CIBC: Recovery Will Be Uneven
• Weekly News Watch 16
• OECD Pushes for Bank of Canada to Increase Interest Rates
• Loonie Posts Largest Gain After Central Bank’s Economic Forecast
• Loonie Reaches Parity Momentarily