Canada to help U.S. out of recession?

This week has been a little slower as far as major economic reports go, but as always there are still plenty of stories of interest for traders to take note of. In general economic news in the United States, minimum wage is set to rise to $7.25 per hour. This could have mixed results as it will give people who need money the most more to spend to help spur the economy, but there are some concerns about whether or not this could put the squeeze on smaller businesses that are already hesitant to hire more workers during a major recession, not to mention causing higher inflation. 

Home sales were up in the United States for the third straight month, giving some hope that if the real estate market can find steady footing that a lot of the rest of the economy will be able to follow, speeding up how long it will take to get out of recession. 

On the “nervous note” side of the economic news, CIT has issued a new deal to buy back debt at a reduced price, hoping to pay $825 million to bond holders to buy off over $1 billion in outstanding debt. CIT is a major lender to small and middle sized businesses, and there’s a lot of worry that bankruptcy could lead to another quicksand effect for the economy. If bond holders don’t accept the new deal, CIT will declare bankruptcy in order to re-organize their company.

So even if these aren’t the conventional “major economic Forex reports,” they are definitely important stories of interest to keep an eye on in the days and weeks to come.  Even though it’s a shorter board this week, there are still important major reports to get to for this week’s report, so without any further ado here is this week’s reporting of the economic week in review.

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