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Below is an excerpt from a recent comment put out by Bank of Montreals Economist, Douglas Porter on December 4,2020. Yet another week of broad

Below is an excerpt from a recent comment put out by Bank of Montreals Economist, Douglas Porter on December 4,2020. Yet another week of broad financial market strength swept up the Canadian dollar to its highest level in almost three years. The currency rose 1.5% on the week by mid-Friday to above 78 cents (US), or just under $1.28/US$. That leaves it up by more than 13% since the depths of the market turmoil in March, but up by a more sedate 1.5% since the start of the year. Of course, the loonie was hardly the only currency charging higher against a listing U.S. dollar, as the euro, for one, was also up 1.5% on the week, while the Korean won rose nearly 2%. And currencies were hardly the only market on the move, with global stocks hitting fresh highs, oil rising above $46, and even recalcitrant bonds getting into the act. The 10-year Treasury was probing the key 1% level by weeks end, up 13 bps in a week, even with a so-so (at best) U.S. jobs report for November. Based on the above comment, briefly explain one factor mentioned that would have a positive impact on Canadas GDP, and one factor that would have a negative impact. Based on the above comment, briefly explain one factor mentioned that would have a positive impact on Canadas federal deficit, and one factor that would have a negative impact.

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