BOC deputy governor Duguay says that the Canadian economy has enetered recession. He leaves it to the market to judge how much further monetary stimulus is needed. The weaker CAD is helping offset weaker global demand and commodity prices. The global economy has deteriorated signficantly since October, he says.
USD/CAD is consolidating on the 1.18-handle after strong CAD buying earlier this morning from a UK name. Canada releases unemployment data tomorrow in addition to the US. A decline of 22,000 jobs is expected after a 70,000 decline in November.
