I remember when the EUR traded below parity with the USD not that long ago. It's worth over a 30% greater.
Never say NEVER when it comes to the market.
I remember when the EUR traded below parity with the USD not that long ago. It's worth over a 30% greater.
Never say NEVER when it comes to the market.
Authentic, an absolute statement rather than can make you eat humble pie one day....and makes me sound sorta as an economist....and we know they are for the most part wrong!! So I will fix myself and say....the charts point for this not occurring....MAY get close....and this isn't the 50's. Canada's market has changed drastically. I've a teter buddy (car haulers ) and automobiles moving from Canada are drying up, (because of cost , maybe?????) And they are moving much move Asian made automobiles. Time will tell, either way the market decides to go with it, I'll attempt to be on the perfect side....Thanks for calling me on that statement!
No worries, just saying it how it is. I would also not say that the condition of the auto business is an accurate representation of the overall Canadian market - that isn't what the Canadian market is built on. When speaking about Canada's market, the area you want to be looking at is tools, which is absolutely enormous. To this end, your statement, Canada's market has shifted drastically could not be more true - the worldwide reliance on natural resources has increased exponentially, strengthening Canada's market as an exporter. An individual could argue in fact Canada's market is stronger right now than it's been in decades. The oil sands in Alberta, precious metals all over, the greatest deposit of uranium in the whole world in Saskatchewan - and of course the fact that Canada is the largest foreign supplier of crude oil into the U.S. - and the frightening reality isn't many Americans even recognize this actuality! Additional to this, the US is a state of importing. As prices rise and US need increases, exporting nations like Canada, Australia, etc. will profit and the US will be paying for it.
For the above reasons, I could readily find the Canadian dollar hitting parity again, or perhaps even exceeding the USD once more.
Well said Shard...I'm one that is acquainted with everything you mentioned, my instance of the auto was just example I could think of that may damage the loonie....and oil and the others have definitely help the loonie....no uncertainty there. Appears I let my US mentality and the fact I had gotten used to the loonie as being cheap in my lifetime affect my eyesight. Times do change....and an elderly puppy as myself doesn't change as fast as the occasions!! Thanks again!
Dude you should not care about all currency rates before 1971 because the entire world is on Bretton Wood, a fixed exchange rate regime, and the dollar is pegged to gold ag $35 per oz. Any fluctuations is as a result of authorities manupulation, not market forces. Pound sterline was worth $4 to get a few centuries but tha this because the UK defined it to be, both dollar and pound was pegged to gold.
The floated exchange rate and hence Foreign Exchange market we all love here only got started in 1971 when Bretton Wood collapsed and Nixon removed the dollar peg and floated the currency.
You bet, it is always fun to go over such matters with edued people instead of the young na?ve people you see every once and a while who are trying to make a fast buck, not do their assignments and don't understand a thing about international economics etc.
So thank you as well.
Yes, you're correct concerning the execution of the Bretton Wood system and that it was fixed, but you might not be conscious of the Canadian dollar specifically within this particular environment, so allow me to attempt to clarify for you.
Unlike other currencies in the Bretton Woods system whose values were mended, the Canadian dollar was allowed to float from 1950 to 1962. As I referenced before when CAD traded higher than USD this is. CAD returned to a fixed exchange rate regime in 1962, but as an inflation fighting measure, CAD was permitted to float in 1970.
Regardless, even though currency values are only really relevant post-1971, then just consider the USDCAD at 1974 if CAD reached 1.0443 USD, once more hitting and temporarily breaking parity.
In addition, it's pound sterling, maybe not sterline.
I hope this has been eduional for you.
Sure you will, Americans are born to shop. And Canadians are nice people, they will have dollar at par days exactly like the Americans did for us when our ccy was floundering...
Usdcad still pushing down, seems it found any aid in region.
Does anyone have any analysis about usdcad, to determine where this heading so far ? And where could be a bottom...