HIGHLIGHTS OF THE WEEK

United States

A dismal payrolls report, in combination with other poor data reckonings such as August manufacturing PMI, increase the likelihood of further quantitative easing by the Fed next week.
This week though, it was the turn of the European Central Bank (ECB), which announced a plan to buy European sovereign bonds in the secondary markets. Despite the positive market reaction, we should be mindful of the limitations of a liquidity tool to address solvency concerns rooted on economic structural deficiencies.
Now it is up to European governments under market pressure to abide by the rules of the game set up by the ECB. The grueling nature of fiscal austerity will not make for a game of happy players.
Canada

The Bank of Canada maintained the overnight rate at 1.0% and reiterated its forward-looking language that should economic growth continue at its current pace, the withdrawal of monetary stimulus may become warranted.
Despite a deterioration in global economic conditions, the Canadian labour market created 34,000 jobs in August and the unemployment rate held steady at 7.3%. Healthy employment gains should help contribute to economic growth of close to 2.0% over the second half of this year.
While international risks, in combination with new mortgage insurance rules may keep the Bank of Canada on hold for the rest of 2012, higher interest rates will ultimately be required to ensure that Canada's housing market and overall economy remain on a sustainable growth path.

Source : actionforex