Canada Deficit Higher than Expected, but Worries Not Raised

Canada's deficit for FY2011-12 was C$26.2B, down from C$33.4B in the previous fiscal year, according to a report released Friday by the Ministry of Finance. The deficit is still higher than the C$24.9B figure that the federal government projected when it released its FY2012-13 budget back in March. Still, the difference shouldn't move ratings firms to downgrade Canada's vaunted Triple-A credit rating as the fiscal deficit cuts remain largely on track to be eliminated by FY2015-16. USD/CAD drifted slightly higher after the budget was released, paring gains to 0.9759, but is still down 0.45% on day, according to CQG.