CDN Dollar Vs. US Dollar

[max_boost]

For you economist out there, will the CDN dollar continue to appreciate relative to the US? What trends do you see? Or will the CDN dollar begin to depreciate? What factors will contribute to these things? A revived US economy? Stabilization in Iraq? Bush venturing in to Alaska for Oil/Energy?

Reason I ask, what if the dollar continues to appreciate and gets to $0.90? Is that possible? In that case, why would anyone still buy a car in Canada when you can go down South and save thousands, after taxes, shipping etc. Or even just buying goods i.e electronics, clothes etc.

Let's hear your responses!

[shadow]

Some economists were predicting around 85 cents although the prediction may be higher now.

It is high now and you are correct the high dollar steers money away from Canada... but that will eventually cause our dollar to drop.... thus causing more foreign investment.... which causes our dollar to rise.... and I think you get the picture...

It will be interesting to see how high it goes though..... maybe we should place bets hehe. =D

[Weapon_R]

It's not going to climb forever. A high dollar kills our economy. But buy on ebay while you can

I think that the reason the dollar rose so high was because of the U.S. elections. No one was paying enough attention to the devaluation of the US currency, but now that things have settled down, look for a decrease.

[Chandler_Racing]

My econmics prof. was saying the canadian dollar was going to continually increase in respect to the american dollar. He also mentioned that the US proposed to devalue their dollar by 20% which i believe was denied.

[Weapon_R]

Originally posted by Chandler_Racing
My econmics prof. was saying the canadian dollar was going to continually increase in respect to the american dollar. He also mentioned that the US proposed to devalue their dollar by 20% which i believe was denied.

Which professor is this? Again, Canada should never allow its currency to get this high. It really is bad.

[JordanLotoski]

i sure hope the canadain dollar drops...keeps our econemy stable...it shold be fixxed at 50 cents

[Chandler_Racing]

Might sound bad but i actually dont know his name. He never said it was what he wanted, but what is most likely to happen, why i didnt ask.

[kenny]

While currency trends can change with a single major headline, the trend is for it to continue rising against the US dollar. Personally I think it'll continue to creep up until the situation in Iraq is more stable, it will probably peak out at $0.90US and fall once they have the elections in Iraq.

Who knows?! haha I have an econ degree but like the saying goes C's for Degrees! hahah

[max_boost]

If it does reach $0.90 US I'm going to hit the bank and buy as much US dollars as I can afford

[JAYMEZ]

I believe it is still going to go up , I like it this high , I can actually afford things out of Canada. I mean being born in England , visiting there is hella exspensive

[Weapon_R]

Originally posted by JAYMEZ_STi
I believe it is still going to go up , I like it this high , I can actually afford things out of Canada. I mean being born in England , visiting there is hella exspensive

But how does that help you with the English pound?

[eb0i]

Personally I hate the high value of our CAD compared to the USD. A lot of my savings are tied up in USD and at present when I exchange it for CAD I feel like crying.

[Singel]

I'm goin to the Dominican on boxing day...not sure exactly when i should go get US$$$. Might give it another week or two

[benyl]

Remember that it is the US dollar that is going down compared to everyone. The Canadian Dollar is the same relative to other currencies, most importantly the euro.

I am in LA right now and I am going on a shopping spree! Strong Canadian dollar make my buying power strong.

The US went before the WTO or the G8 and asked to devalue the currency by 20%. They were denied. So what they are doing now it just letting it slide.

Reason? They want to be able to competitive with their exports to kick start their economy. Look at the crazy incentive the car manufacturers are coming up with. Remember that the car industry drives the US economy. If the Big 3 are in the toilet, so is the ENTIRE US economy.

[E36M3]

Benyl is right about the reason the US is devaluing the dollar. Basically, they are sending a powerful message to China (who has a controlled currency, the RMB and has artificially kept the value low to increase exports). Without China reducing currency controls and allowing their currency to get closer to its market value, the US has little choice but to devalue the US Dollar. It should be interesting to see what happens.

Keep in mind that the efficient market hypothesis takes all these points into account -- ie. the current value should be indicative of these and other important trends. In either case, it is awesome to see the USD slip against the British Pound

[max_boost]

A little OT then, why the hell is the British pound worth so much?

[sputnik]

Another thing to consider.

A high dollar can increase inflation. The Bank of Canada likes to keep inflation around 2% and if it goes up over 2% they increase interest rates to push it down.

So there is a chance that gone will be the days of <4% mortgages. Lets hope we dont repeat the early 80s (18-20% mortgage rates).

[Khyron]

What years were it back when the Cdn dollar was worth more than a US dollar? Great for tourists going to the US, but shit for everyone else. Though if interest rates creep up to 8 or 9%, there's gonna be some real sweet forclosure incentives waiting for us.

Khyron

[E36M3]

They aren't a huge producer of exports, so my guess would be that they haven't had to devalue their currency as a result. They depend on a strong currency to buy things for their country (they are a small island so they import a ton of crap) so it is in their best interest to keep it strong. They've kept off of the Euro for this reason.

Originally posted by max_boost
A little OT then, why the hell is the British pound worth so much?

[awd]

For every 1 cent our dollar rises, ~1000 canadians become unemployed.

It is not a good thing.