Canadians should be … "standing on guard" … as the currency pushes for a violation of "parity" to the US Dollar, which, in turn, has put downward pressure on exports relative to imports, causing the current account balance to collapse into a deepening deficit … in synch with a tightening in monetary conditions and an intensifying erosion in the core of the Canadian labormarket. Canadians should be on guard, for more macro-market turbulence.
Indeed, as noted in the chart below, Canada's Current Account Balance plunged to its DEEPEST DEFICIT EVER during the 3Q.
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