Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investing From Scratch A Handbook For The Young Investor

Authors: James Lowell

1st Edition

014303684X, 978-0143036845

More Books

Students also viewed these Finance questions

Question

What are Eurodollar CDs and Euro commercial paper?

Answered: 1 week ago

Question

6. Do you think Lexus will succeed in Japan? Why or why not?

Answered: 1 week ago