This is a moved thread from GD. Thanks to Manhattan for so kindly pointing out it didn’t belong there, even though I believe it was a toss up between the two.
So, would any economists (professional or otherwise) care to speculate when the Canadian Dollar is going to stop its nosedive against the US dollar?
Does anyone know why the US$ appears to just be getting stronger against all currencies? (Not only Canadian?)
Thanks!
I don’t understand the C$ collapse either. The U.S. has now reduced interest rates three times without a similar move in Canada. This should strengthen the Canadian dollar. Also, capital is moving from the stock market into money markets, which should also strengthen the dollar.
Canada’s economy is also stronger than the U.S. economy right now, and we’re not as susceptible to the energy problems cropping up in the U.S., partly because we have a lot of resources of our own, and partly because it’s a lot easier to build power plants in Canada (even nuclear).
So, I’d bet that the dollar will not slide much farther, and might in fact represent a good investment opportunity. But then, I’m not a pro, and could be missing a lot of factors (such as the Bank of Canada selling off the dollar, or a structural problem with our debt, or whatever).
IMHO, the economy is controlled in part, by people. We,(they) don’t want our dollar to rise too much. It’s good for trade.
Agreed, but we don’t want it falling too much more either, correct?