The Government of PM Harper has forecast a return to a balanced budget by 2013-14. The Canadian Budget Officer does not see the budget reaching balance until later. GDP will fall -2.4% in 2009 and rise 2.2%, next year, he forecasts. Unemployment will average 8.7% in 2009 and 9.4% in 2010, according to the Budget official.

USD/CAD trades at 1.1645 after absorbing Asian selling earlier in the session.