Canadian Finance Minister Flaherty will present updated budget forecasts in a speech at the top of the hour.
The current thinking is that he may revise the current year deficit slightly higher but maintain the medium and long-term outlook. If 2013 and 2014 forecasts are lifted, or the target date for a balanced budget is pushed out, there could be a knee-jerk reaction higher in USD/CAD but it’s unlikely to last.
Overall, a bit of perspective shows that Canada is in an outstanding position relatively. The current deficit projection for this year is C$21.1B. That’s equal to the deficit the US racks up every two days.
