Delayed The Parity Of The Canadian

The Weekly Bottom Line : 28/01/2012 HIGHLIGHTS OF THE WEEK United States The Federal Reserve committed to keep rates on hold through the end of 2014 this week, while today's Q4 GDP released underscored the fragility of the economic recovery. Unfortunately, further monetary easing isn't what is going to provide the jolt the economy needs. What's holding the economy back right now isn't the price of credit; it's the lack of quality borrowers. The pool of potential borrowers willing and able to take advantage of lower interest rates is limited. And as long as aggregate demand remains depressed, businesses will continue to put off investing until the economic outlook improves. What the economy needs right now is more effective fiscal policy solutions. However, fiscal policy so ...

The Canadian dollar rose as the North American stocks rallied after the hostile bid for the Potash Corp. by the BHP Billiton Ltd., which increased the appeal of the growth-linked assets. The future for crude oil, Canada’s main export, slid as much as 2.6 percent to $73.83 on NYMEX, the lowest level since July 7th. The slump of the oil prices was overshadowed by the rally of the stocks after the BHP offered $130 in cash for each Potash share ($40 billion for the whole deal). The Standard & Poor’s 500 Index rose 0.2 percent after it declined earlier. The investors reduced bets that the Bank of Canada will raise the interest rates as the US economy shows the signs of the weakness. The forecasts delayed the parity of the Canadian dollar with its US counterpart till 2011. USD/CAD traded at 1. ...