Take a look: http://finance.yahoo.com/q?s=cadusd=x
Stats Canada confirmed today that job creation in Canada was much weaker than announced by the federal government on a monthly basis.
In others words, the economy in Canada is NOT booming, contrary to statements from Ottawa!
@pierrelebel wrote:
In others words, the economy in Canada is NOT booming, contrary to statements from Ottawa!
Depends who in Ottawa you listen to!
My opinion is that the Loony was always over valued. It was about a year ago that economists were predicting it should fall to 85¢, in 2015, against the US $. That was before the drop in oil.
So? The drop in oil added a whole whacking nickel to that?
That is why the B of C dropped the interest rate last week. They looked at the big picture and said "The Looney was over priced, oil only impacted a nickel, we can drop the interest rate and boost exports.". The boost in exports helps the entire country. I, me, am an exporter. This is earning me money.
So? The drop in oil added a whole whacking nickel to that?
That is why the B of C dropped the interest rate last week. They looked at the big picture and said "The Looney was over priced, oil only impacted a nickel, we can drop the interest rate and boost exports.". The boost in exports helps the entire country. I, me, am an exporter. This is earning me money.
The Cdn$ briefly traded below US$0.79 this morning (US$0.7892 to be exact).
I would think we are very close to a short term bottom at US$0.79 (give or take a little bit). I have converted my US$ holdings into Cdn$.
While the Russian economy is nose diving, the ruble has lost most of it's vale, and the government is burning through hundreds of billions of dollars, CDNs go "Oh dear".
China is buying up bankrupt countries: Venezuela, Argentina, Ecuador. The largest economy in Africa, Nigeria, has lost a huge chunk of it's value. Greece is threatening to bail on the EEC and destroy what is left of their economy.
CDNs are rightly quite alarmed. What does every CDN say about the diving dollar? "Florida is going to be expensive this year".
Yeah, we have it tough.
Why is the Canadian dollar down again today (Friday January 30)?
According to the press release by Stats Canada this morning:
Real gross domestic product declined 0.2% in November, largely the result of declines in manufacturing, mining, and oil and gas extraction.
Goods production fell 0.8% in November. Notable decreases were recorded in manufacturing and mining, quarrying, and oil and gas extraction. In contrast, utilities and the agriculture and forestry sector increased. Construction was unchanged in November.
The output of service industries was unchanged in November, as increases in retail trade and the public sector (education, health and public administration combined) were offset by declines in other areas. Notable decreases occurred in wholesale trade and the finance and insurance sector.
Manufacturing output fell 1.9% in November, after rising 0.7% in September and 0.6% in October. Durable-goods manufacturing decreased 1.8% in November, as most industrial subgroups declined. Decreases were most notable in the manufacturing of machinery, fabricated metal products and primary metal.
Non-durable goods manufacturing fell 1.9% in November, mostly as a result of notable decreases in chemical, and to a lesser extent, plastic and rubber products manufacturing.
Wholesale trade declined 0.6% in November, following a 0.2% decrease in October. November's decline was mostly a result of decreases in the wholesaling of machinery, equipment and supplies and, to a lesser extent, of building materials and supplies as well as petroleum products. In contrast, the wholesaling of motor vehicles and parts and of personal and household goods grew in November.
Anyway you look at it, the Canadian economy is not in the greatest of shape and it is largely reflected in the weak relative value of the Canadian dollar.
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