The omicron variant is almost-certainly set to sweep through Canada and the rest of the world in the months ahead. That will mean school shutdowns and a multitude of over issues.
A key question to go along with that is on the spending side. Government spent tremendous amounts of money since the pandemic to prop up household balance sheets; so much so that most are better off than they were before the pandemic.
That's led to some countries cutting back supports, including Canada.
However Trudeau in an interview with CityNews today said that he wouldn't hesitate to bring back 'economic support'
“If we need to bring back more supports, we will,” he said. “We’ve actually got a bill before the House right now to make sure that there are lockdown supports as people have to face difficult decisions so that there is support for people if municipalities or regions have to bring in more lockdowns, which nobody wants, but might happen.
“Because we know that supporting people with economic support to get through this is the best thing, not just for the health outcomes, it’s also the best thing to make sure that our economy comes back as quick as possible and people get through this with as little economic pain as possible.”
USD/CAD is near the highs of the day, up 59 pips to 1.2780 as the mood in markets sours on omicron.
