How about that Canadian Dollar eh?

[JoEsMhOe]

http://www.cbc.ca/story/business/national/2006/05/01/loonie-060501.html



Loonie cruises near 90 cents US

Last Updated Mon, 01 May 2006 13:58:08 EDT CBC News (http://www.cbc.ca/news/credit.html)

The Canadian dollar continued its upward trajectory on Monday as market watchers suggested it is headed back to parity with the U.S dollar.
The loonie finished at 89.83 cents US, up 0.38 of a cent from Friday's close.


The Canadian dollar has been on a tear recently, rising from 86.01 cents US at the end of March to 89.26 cents US at the end of April.
With the loonie approaching 90 cents US, some economists are now suggesting that a return to parity with the U.S. dollar is only a matter of time.

National Bank Financial chief economist and strategist Clement Gignac said in a research report that the loonie could achieve parity by the autumn of 2007. The last time the Canadian and U.S. dollars were trading at the same level was 1976.

Gignac noted that he had previously forecast parity between the two currencies by 2010.

The next round of the Canadian dollar's rise is likely to be driven more by weakness in the U.S. dollar than by the rising price of oil, he said in the report issued Monday.

The record current-account deficit in the U.S. and the increasing likelihood of foreign reserve diversification by Asian central banks are expected to drive a new drop in the U.S. dollar, he said.

"It would be naive to assume that the currency of Canada, a country with both current-account and fiscal surpluses, will be untouched by a realignment of global exchange rates," he said.

Gignac also sees the Bank of Canada allowing the loonie to rise as long as the Canadian economy continues to operate at or near its long-term capacity.

The economist acknowledged that his forecast is not without risks. In the event of a sharp correction in commodity prices, or a hard landing for the U.S. economy, the Canadian dollar could lose steam, he said.

Last week, Dennis Gartman, who writes the Gartman newsletter, also suggested parity is a possibility.

"Why shouldn't Canada go to parity? It has what the world needs. It has water, it has oil, it has steel," Gartman told Bloomberg. "You name it, Canada has it."


You what do you guys think of this growing trend of the dollar. Sure, too much of a good thing can be bad, but the eventual outcome to be worse.

[LinkTheGameFreak]

At least it's not a bad situation where the value was going down. At that point no one would care... How can you take any economic situation seriously when your money is called "the loonie"? :P

[sololop]

Aw...

This belive it or not, is making my family have less money! Dollar, go down 20%! My parents work both ship and do the majority of buisness outside of Canada, mostly in the U.S. This means as our dollar goes up, the American money we get paid with is worth less and less. My dads buisness laid off two entire offices because of this.

O well, this country's economy does need a boost though, and overall this is great. Maby they can actually pave some of the roads down here insted of putting up a "rough section next # km" sign ...

And I think our our One dollar coin is called the Loonie because it has a Loon on it. It's the two dollar coin that bugs me, the "toonie" ...Real creative economy dudes....

[TheGreatBrain]

If nothing else, the Canadians might finally be the butt of fewer American jokes.

[Markpyro]

If nothing else, the Canadians might finally be the butt of fewer American jokes.
O_o... I thought we were the butt of all Canadian jokes >.>. Canadians need a few more jokes aimed at them :P

[DragonPaladin]

O_o... I thought we were the butt of all Canadian jokes >.>. Canadians need a few more jokes aimed at them

Remmeber Fenguin? (Oh god, not the Hudson bay!)

[kongurous]

OMGZ HES GOT A LOONIE TOONIE!

Sarcasm aside... America still > Canada's economy.

[pixels]

lol canada > america

[Graeme]

Bad news for Canada >_<. Higher dollar == less American investors and less American business . . .

[dunchy]

OMGZ HES GOT A LOONIE TOONIE!

Sarcasm aside... America still > Canada's economy.

You have President Bush as your economic leader, how on Earth would you say the economy is doing well?

You should research before you post that ;)

I'm going to Vegas in August though, this really helps my trip out saving money because of the exchange rate.

[kongurous]

You have President Bush as your economic leader, how on Earth would you say the economy is doing well?

How? Our dollar is still higher than yours, that's how :P

[Nuts]

This belive it or not, is making my family have less money! Dollar, go down 20%! My parents work both ship and do the majority of buisness outside of Canada, mostly in the U.S. This means as our dollar goes up, the American money we get paid with is worth less and less. My dads buisness laid off two entire offices because of this.
Unless your folks are working under contractual obligations, it's not unheard of to raise pricing based on currency fluctuation. But I'm sure they understand that. When the U.S. dollar was on a downward spiral, my Asian manufacturers were raising prices to accommodate the lesser valued dollar.

In the end, currency is nothing more than a measure of value, it need not be a static number. The problem with a fluctuating currency is not the valuation, but the change itself. One can always adjust, but the rate of change can knock your socks off if you're not watching carefully. So long as your Canadian dollar does not exceed the U.S. dollar, your pricing should remain competitive against U.S. firms.

I don't pretend to understand everything about international currency, but one thing is for certain, nobody sets your pricing but you.

Oh and dunchy, even though Bush has made a mess of some things, our economy is actually doing quite well. Housing, employment, incomes, they're all up and there's no sign that they're slowing down.

[xodkrm]

I dont know if I should be glad or sad.
><

[dunchy]

Oh and dunchy, even though Bush has made a mess of some things, our economy is actually doing quite well. Housing, employment, incomes, they're all up and there's no sign that they're slowing down.

Do tell. One thing going up in this frozen north is trades. Everything is electrician, plumber, roofer ect... if it's a trade, your in demand. It's rather sad because I don't want to be a 40-50 year old man who still has to work with a sore back making only 50-60K tops. When I visited Seattle (My favorite US town) data control jobs which normally only pay us 30-40K are paying 80K down there! Is there many white collar jobs down there?

Wish I could live in the States :( It's too cold up here.

[frazz]

The U.S. dollar wil soon be worth less than the Everquest platinum.:P

[Nuts]

Is there many white collar jobs down there?

Does George Bush mispronounce Nuclear? ;)


The U.S. dollar wil soon be worth less than the Everquest platinum.
The U.S. Dollar has actually been leveling out this past year. 1.26 -vs- 1.28 this time last year. It took a dive the past few months, but we're still within safe territory for the time being.

[Whiteknight]

Believe it or not, the Canadian dollar was higher than the states a while ago.

Really, I'm getting tired of the dollar being lower for "economic and trade reasons". I'm tired of being the lower person. Why can't we have the strong dollar and then be on the top of the relationship instead? We need a more self-sufficient economy anyways.

[frazz]

The dollar is low because our govt has a debt of (how many?) trillion dollars.

[sololop]

Doesn't the USA have a debt of over 40 billion dollars? And growing? That will eventually come back to haunt their economy. 40 billion is alot, so I wouldn't be suprised if the USA economy collapses in on itself in years to come. But what do I know..

[frazz]

^No I'm farely certain it's in the trillions. There is more than 40bill wasted each year in pork alone. 40 billion dollars is a reasonably low debt government wise. If that was all there was then the problem would be relatively easily fixable.

[TinyDancer]

Doesn't the USA have a debt of over 40 billion dollars? And growing? That will eventually come back to haunt their economy. 40 billion is alot, so I wouldn't be suprised if the USA economy collapses in on itself in years to come. But what do I know..

http://www.brillig.com/debt_clock/


Try something more like $8,350,171,053,974.04.

Eight trillion, three hundred-fifty billion, one hundred seventy-one million, fifty-three thousand, nine hundred seventy-four dollars, and four cents.

[frazz]

No.
$8,350,301,112,980.24 as of a few seconds ago
1.95 billion a day, eh?
Hi Ho, Hi Ho,
It's off to debt we go,
With dollar's bill and stocks all low,
Hi Ho, Hi ho.
(Courtesy Sgt.Slagrock)

[Sgt.SlagRock]

*cough* I wrote that *cough* wow, it's been a long time since i've been on the forums

[frazz]

I credited you, sarge.

[Staind]

I think Canadian debt is about 500 billion or so, but I mean if we never payed it back ... who cares? ;)

[frazz]

A country's credit is just as good as a country's money. Until....
A. The nation falls from power via war.
B. Great depression.
C. The debt gets so RIDICULOUSLY large that the stock market in that nation goes down the pooper.
In canse C, the country's credit is still as good as the countrys money(which is worthless).

So the U.S. is digging itself into one big hole that is hard to get out of.
A few notes.
Eevry US citizen's share is more than $25,000. We all owe the governemnt another cent every minute.(I think)

[sololop]

$8,350,301,112,980.24 THAT, my friends, is an incredibly large number. O_O

Wouldn't having so much debt be harsh on the value of the dollar? Or does debt have nothing to do with how the values work?