The Canadian dollar has fallen to 6-week lows against a broadly stronger US dollar. In Canada, the country is focused on the throne speech and the unusual address to the nation by the Prime Minister. From the market’s perspective, attention will be paid to budgetary considerations and spending priorities. If the government’s proposals lead to a much larger than expected deficit path, the Canadian dollar will come under some pressure. But that is unlikely to happen given that the government’s program has already been well previewed. Indeed, global considerations continue to be the driving force on the Canadian dollar. This morning’s broad strength in the US dollar is a result of data showing euro zone business growth grinding to a halt this month.
