Woot! Canadian Dollar below 85 cents!

[recped]

Well the year is starting out very well, the Canadian dollar ended the week below 85 cents for the first time since February of 2009. Other than that brief dip in 08/09 it's now at the lowest level in about 8 years!

There is some joy in Mudville!

I'm still hearing comments from traders that it's expected to go even lower over the next few months.

To snowbirds and Caribbean vacationers, you have my sympathies.

[2014sportsterguy]

Just as we go to Lost Vegas 🙂  anyhow gas price is 109 litre as low as 104 in Van.

[cumos55]

Many sellers, including me, sell on eBay using US dollars.

Things look good for the seller... but ever so quickly buyer sees a price in Canadian dollars that is 15 % higher than the listed US price.

Just did a major reduction in price... mainly high priced items ...higher than $25 US  for now....  and the purchases  have kicked in.

US Buyers will be happy with the lower price.....  while Canadian buyers will buy based on the Canadian price... 

The Canadian price, after a reduction in price,  should be about equal to the US price before a reduction in the US dollar price..

Will make more adjustment... as required... particularly in that $20 to $30 US range...

[cumos55]

Winnipeg gas price 84.4 cents per litre....

[recped]

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@cumos55 wrote:

Many sellers, including me, sell on eBay using US dollars.

Things look good for the seller... but ever so quickly buyer sees a price in Canadian dollars that is 15 % higher than the listed US price.

Just did a major reduction in price... mainly high priced items ...higher than $25 US  for now....  and the purchases  have kicked in.

US Buyers will be happy with the lower price.....  while Canadian buyers will buy based on the Canadian price... 

The Canadian price, after a reduction in price,  should be about equal to the US price before a reduction in the US dollar price..

Will make more adjustment... as required... particularly in that $20 to $30 US range...

---

That's true but if you are selling mainly to Canadians you should probably list in CA$.

Personally even at the peak my Canadian sales represent less than 5% of the overall. I would never lower prices to please a small number of people while giving a "gift" to the majority who haven't asked for it.

[cumos55]

My percentage of US buyers has been slowly rising.  since 2013....

I have only sold in US dollars.... during all my years on eBay

It is my aim to increase my sales to the US... adding appropriate categories of inventory....and selling in US dollars would allow me to do that

I have already made some adjustments  and will make adjustments as required...based on sales... research and more.... 

[reallynicestamps]

My sales are picking up in the post-Xmas period and now that I have nearly a third of my previous listings re-listed. (I closed up shop during our retirement move from Ottawa to Victoria.)

Victoria and Nanaimo have had gas holding at $1.019 for several weeks now, but there is one independent as we go up the Malahat Pass with $0.999 a litre.

I've moved to Free Shipping for most of my items, without changing my asking prices, based on the 15% difference.

[jt-libra]

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@cumos55 wrote:

Many sellers, including me, sell on eBay using US dollars.

Things look good for the seller... but ever so quickly buyer sees a price in Canadian dollars that is 15 % higher than the listed US price.

Just did a major reduction in price... mainly high priced items ...higher than $25 US  for now....  and the purchases  have kicked in.

US Buyers will be happy with the lower price.....  while Canadian buyers will buy based on the Canadian price... 

The Canadian price, after a reduction in price,  should be about equal to the US price before a reduction in the US dollar price..

Will make more adjustment... as required... particularly in that $20 to $30 US range...

---

I'm with cumos.  I'm constantly adjusting my prices to compensate for the exchange rate.  Canadian buyers have been good to me over the years and I take no pleasure in benefitting from their increased costs.  It could be argued that for years we took a beating when our dollar was high, but I adjusted my prices then just as I have now.  By keeping prices down as low as I can to benefit the Canadian buyer, I've experienced more sales from U.S. buyers since my prices are now more in line with American sellers, even with the higher cost of shipping.

[Anonymous]

Hope it will not be a repeat like in 2003 where it is nearly 75 cents!!

Honestly I don't understand why it should be lower, I felt $1.00 is $1.00, period!!  Whoever invvented this insane should be shot!!

[rose-dee]

It's like manna from heaven for me.  Finally a bit of a break!  

Since over 90% of my sales are to the U.S., as long as the dollar stays around $0.85 US or lower, I'll be able to leave my 2011/12 shipping rates as they are, regardless of what Canada Post does this spring.  It also means being able to run more markdowns.

I know it's probably not good news for all sellers, but it's a New Year's gift for me.  

[muscoviteman]

" I felt $1.00 is $1.00, period!!  "

The Canadian and U.S. dollars are different currencies. Both just happen to be called dollars. There are also Australian dollars, Hong Kong dollars, Bahama dollars and more. All are different just at are Yen. Pounds etc (which just have different names). Right now demand for oil is low so demand for Canadian dollars to buy it is low.

[maximus7001]

Don't forget about the 2.5% conversion fee to change it to Canadian so you can spend it.

[rose-dee]

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@muscoviteman wrote:

" I felt $1.00 is $1.00, period!!  "

The Canadian and U.S. dollars are different currencies. Both just happen to be called dollars. There are also Australian dollars, Hong Kong dollars, Bahama dollars and more. All are different just at are Yen. Pounds etc (which just have different names). Right now demand for oil is low so demand for Canadian dollars to buy it is low.

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You're quite right about the Canadian/U.S. dollars (same word for different currencies), but at the risk of seeming like I'm quibbling, I believe the problem right now with oil is that demand is high but so is the supply from places like Saudi Arabia.  

Apparently the Saudis are boosting production and flooding the market, for reasons no one seems to be able to explain with any clarity.  As a result, oil prices everywhere have slumped, and Canada's oil, which is not only expensive to produce, but of lower quality than many other types of oil, has become less desirable.  The consequence has been to drive down the value of the Canadian dollar.  It may not last, but it is certainly making Canadian exporters of all kinds very happy for the time being. 

[recped]

Demand for oil is not "high" is lower than it's been for many years.

There are two primary reason the Saudis are continuing to pump (they are not really boosting production but rather maintaining production where they would have cut it under similar circumstance in the past) and they are; 1) to put the US fracking industry in the tank and 2) to really hurt Iran who are pretty much entirely dependent on oil for their economy to exist.

As a side effect they are hurting a number of other OPEC countries (Nigeria, Venezuela) but that's just collateral damage they are not concerned with.

These lower prices are hurting the Saudis as well but they have the cash reserves to tolerate a short term loss for long term financial and political gain.

I imagine there are a lot of people in Washington who very much enjoy seeing what these low prices are doing to Russia these days. Economics are one thing but politics is often the driving factor behind many of these things.

[pierrelebel]

And the relative weakness of the Canadian dollar continues.

Trading below US$0.84 this morning.

http://finance.yahoo.com/q?s=cadusd=x

[jt-libra]

Gas was .799 in Winnipeg yesterday.

[riceqa02]

Gas in Edmonton as of yesterday at Costco was 67.4c, everywhere else 72.4c

[rose-dee]

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@recped wrote:

Demand for oil is not "high" is lower than it's been for many years.

There are two primary reason the Saudis are continuing to pump (they are not really boosting production but rather maintaining production where they would have cut it under similar circumstance in the past) and they are; 1) to put the US fracking industry in the tank and 2) to really hurt Iran who are pretty much entirely dependent on oil for their economy to exist.

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That's not exactly the analysis I heard, but there are probably as many theories as there are expert analysts on the reasons for the current situation.  

One thing a lot of experts seem to agree on is that, despite the boon to Canadian exporters in our little corner of the world, it is causing instability in other parts of the world, as you say, and uncertainty, both politically and economically.  Those are factors the markets don't react well to (mainly, I would venture to say because modern markets are virtually nothing but gigantic gambling venues).  Instability and uncertainty never seem to bode well for world peace either, which may be even more worrying. 

[cumos55]

Earlier today I asked myself... the following questions.....

If everything is OK with today's oil prices.....  then...

(1) Why have oil prices been so high?

(2) Did they really have to be so high?

and.. finally... a new question....

(3) Will the price of gas be higher next summer.... as they have been in previous summers and relative to winter prices?

[tobyshitzu]

The years of high prices brought huge investment to increase supply in areas where production cost was higher,  and Irag got back on track.  Supply outstrips demand, down it goes.  Now supply will start to be curtailed, conservation efforts stopped (anyone want to buy an EV car now?) and eventually the saudis will give in and send the price back up