USBC Wire- 
Recent economic projections of continued anemic growth in the US coupled with shaky debt issues in the European Union caused the Bank of Canada to revise its growth projections for the coming quarter from 2.9% down to only 0.8%. Despite these estimates presented in the bank's quarterly Monetary Policy Report, the Canadian dollar (or Loonie) surged strong against its US counterpart and remained basically on par, with the Loonie valued at 99.52 US cents. Historically, the Canadian has been valued at more than 1 US dollar.

With a soft projection for Canadian economic growth and the accompanying flat interest rates necessitated by such projections, past history would dictate that the Loonie would weaken against the US Dollar however, the current poor state of US finances has apparently overpowered historic trends.

John Curran, senior vice-president at a Canadian foreign exchange firm seemed confused about the results saying:"If the Bank of Canada is telling us things are going to slow down due to global scenarios, I don't see why the market is not listening to the officials that are involved with the issues”. Other experts, taking a broader view have noted that the weakness of economic situations in the left-led governments of the US and Europe are a likely cause of the strengthening of confidence in Canada’s economy to continue to do outperform.

Led by a right-of-center government Canada has outperformed those economies over the past several years and its sound approach has been appreciated by voters who recently reelected the Conservatives. The market now appears to be signaling its satisfaction with the Conservatives as well.