Although the U.S. government has never officially defaulted on its debt, it missed payments on some Treasury Bills in 1979. Then as now, Congress was playing a game of chicken with Republicans and Democrats bumping heads on raising the debt ceiling. The debt limit was a fraction of its current levels and at the time, [...]

Posted in us deficit, us trade deficit No Comments »

In the middle of February, when USD/CAD was trading at 1.2515, I talked about how it could hit 1.28. Now that this target has been reached, the move could extend to 1.30.
At the time, I argued that the shrinking trade deficit in the US and the first trade deficit for Canada in 32 [...]

Posted in 2009 canadian dollar, Canadian Dollar, Forex Technicals, USD/CAD, forex blog, us trade deficit 5 Comments »

The US trade deficit narrowed materially in the month of November to the smallest since June 2003. Although the narrower trade deficit is normally something to cheer about, the details of the report indicate that the only reasons why trade improved was because of the fall in oil prices and slower domestic demand. The big [...]

Posted in Canadian Dollar, USD/CAD, forex blog, us trade deficit 2 Comments »