Loonie reaches US$1.10

[gordholio]

The Loonie just went over US$1.10. I don't know if it will stay there today, but that's quite a jump from yesterday.

[aimfox]

soon or later. it will be 1.5.. mwahahhaha :D

[ali123]

maby even $2 hehehe...

[yao416]

soon or later. it will be 1.5.. mwahahhaha :D


maby even $2 hehehe...

ridiculous!

2$ will never happen

[wisdom_kid]

Many people are not happy about this, can anyone tell me why? Isnt this just making our economy better if our dollar is higher?

[kuqdew]

Many people are not happy about this, can anyone tell me why? Isnt this just making our economy better if our dollar is higher?

makes our poor because our exports are junk

[ali123]

Many people are not happy about this, can anyone tell me why? Isnt this just making our economy better if our dollar is higher?

companies are profiting less money when they sell things to the US

[Shaner]

makes our poor because our exports are junk

In theory, yet look around, our economy is still booming when the experts said it would start faltering if the loonie reached $0.85.

[kuqdew]

In theory, yet look around, our economy is still booming when the experts said it would start faltering if the loonie reached $0.85.

Yea, theres jobs everywhere. Even in the GTA!

[izzyzz]

In theory, yet look around, our economy is still booming when the experts said it would start faltering if the loonie reached $0.85.

Rising oil prices would have a lot to do with it as we're the biggest oil exporter to the U.S..

[Shaner]

Rising oil prices would have a lot to do with it as we're the biggest oil exporter to the U.S..

Regardless of the reasons, our economy is booming and unemployment is at a 33 year low, despite reading numerous reports by "experts" that our economy would go to shambles and hundreds of thousands would lose their jobs if the dollar was ever at par.

[Fyro]

Other countries have survived, and still survive with high dollar values... we will adjust if it stays this way... either way for consumers in Canada it cant be a bad thing.

[tkyoshi]

In the big picture what it comes down to is not whining but being competative.

If companies are productive and competative they can compete with the dollar over par. The US had a very strong dollar for a long time and they were still able to produce stuff. Even in Manufacturing Rich ontario, unemployment is at an all time low.

[gordholio]

soon or later. it will be 1.5.. mwahahhaha :D

I doubt it. I think the government would step in along with the Bank of Canada (not the government) and raise interest rates to keep the dollar from going anywhere near US$1.50.

[unleashed]

The dollar is fluctuating at a very fast pace, can this have any negative affect on our economy?

[Kommander_KornFlakes]

The Loonie just went over US$1.10. I don't know if it will stay there today, but that's quite a jump from yesterday.

Unfreakingly amazing, I didn't believe this when my fiancé told me last night, how can the Loonie rise over 15 cents in less than 2 months?
-

[grant]

I doubt it. I think the government would step in along with the Bank of Canada (not the government) and raise interest rates to keep the dollar from going anywhere near US$1.50.
a) raising interest rates causes the dollar to RISE (not fall)
b) Band of Canada's mandate is to target inflation, not the dollar's value. Rates will only drop if inflation looks like it will fall below the target otherwise.

(btw, the target inflation is 1-3% and right now it's at 2.5%, i.e., the high side. Chances of a rate drop are slim.).

[M@rk]

Many people are not happy about this, can anyone tell me why? Isnt this just making our economy better if our dollar is higher?

I sell on eBay to mainly Americans, and everything is in USD. When I withdraw the money from PayPal, $693 USD becomes $627 CAD

God damnit, I remember a time when that would've been $1000 CAD

[rdtx2002]

Cad-usd 1.098 +0.0200 (1.856%)
6:21am

[Siefer999]

I sell on eBay to mainly Americans, and everything is in USD. When I withdraw the money from PayPal, $693 USD becomes $627 CAD

God damnit, I remember a time when that would've been $1000 CAD
I'm in the same boat. its ebay season for me and as happy as I am with my US purchases, I'm getting hosed everytime I sell something.

[rdtx2002]

1.1002 at 6:45am

[mlc2000]

6:50am

http://i5.photobucket.com/albums/y188/itsfatboy/12.jpg

Nov. 7 (Bloomberg) -- The dollar fell the most since September against the currencies of its six biggest trading partners after Chinese officials signaled plans to diversify the nation's $1.43 trillion of foreign exchange reserves.

The U.S. currency declined more than 1 percent against the euro, yen, Canadian dollar and Swiss franc, and almost as much against the British pound and the Swedish krona,

"Further weakening of the dollar is very likely.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=aOoJCF.XMFsY&refer=worldwide

If the US goes into the tank, so do we.

[rdtx2002]

If the US goes into the tank, so do we.

we have not gone in the tank so far.. what makes you so sure about it.. if anything.. Gold and Oil and the less reliance on the USA is keeping the dollar higher.

Anal-ysts predicted we would go in the tank with a 85 cent dollar.. now it's 1.10, we have low unemployment and inflation is steady

[MVP1]

I think the American dollar will slowly go back up again after George Bush is done his tenure but until then it's going nowhere but down.

I might head to the US on the weekend to do some shopping. Does anyone know if credit card companies give you top exchange rate? I'll be using my credit card.

[abu_sme]

The dollar is fluctuating at a very fast pace, can this have any negative affect on our economy?


Unless you are exporting ONLY things that have inflexible demand (like oil) it is pretty disastrous. The place that will be hit the hardest will be Ontario for sure. Auto exports will fall for certain. I could care less about the CDN/US thing though. I am happy that the CDN has been going up against the EURO. It's dropped by 15 cents since the beginning of Sept. What's not to like?(for me that is)

[hehehaha]

Many people are not happy about this, can anyone tell me why? Isnt this just making our economy better if our dollar is higher?

i think unless you are shopping in the US, or traveling......i don't feel the stuffs are cheaper than before, nor i'm richer........

[perplexed_one]

it benefits us as consumers, we can get more bang for our buck. alberta is stronger than ever thnx to the dollar and high oil prices.

and i think the americans are benefiting from cross border sales, especially the rust belt where it's esp. needed.

[mlc2000]

we have not gone in the tank so far.. what makes you so sure about it.. if anything.. Gold and Oil and the less reliance on the USA is keeping the dollar higher.

Anal-ysts predicted we would go in the tank with a 85 cent dollar.. now it's 1.10, we have low unemployment and inflation is steady

The Canada-U.S. trade relationship is the largest ever to exist between two nations. Two-way trade in goods and services between Canada and the United States during 2000 was estimated at approximately C$700 billion, or almost C$2.0 billion per day.

Of Canada's 2000 imports, 74 percent came from the U.S.,
while 86 percent of Canada's total exports were shipped to the United States.

The volume of Canada-U.S. trade last year was far greater than the total amount of Canada's trade with all of its other trading partners combined.

It is difficult to overstate the impact of international trade on the economies of Canada and the United States.

In 2000, 43 percent of Canada's gross domestic product was comprised of exports and over 30 percent of total employment in the country was supported by exports. (Edit: Canada's GDP in 2000 was $1075Billion. In 2005 it was 1368.73Billion. Each year the GDP rises about $70-90B.)

With 86 percent of all Canadian exports last year destined for the US, it is clear that trade with the United States creates an enormous number of jobs for Canadians.

Source :http://www.buyusa.gov/canada/en/traderelationsusacanada.html

So, tell me how this CANNOT affect Canada??

86% of our exports have become 25% more expensive for our customer to purchase, just in the last 10 months.


Do you not think that this will reduce the amount of goods purchased by the US?

If we extrapolate from these numbers that Canada exported roughly $500B /year in goods to the US last year,this year it will cost the importers in the US $6525B to import the same goods.

If the US tanks, we tank too.

The high dollar is great for consumers. Consumers with jobs, that is.

[MVP1]

I think the American dollar will slowly go back up again after George Bush is done his tenure but until then it's going nowhere but down.

I might head to the US on the weekend to do some shopping. Does anyone know if credit card companies give you top exchange rate? I'll be using my credit card.
Anyone know?

[YLSF]

Anyone know?

I thought that CC companies give you the actual exchange rate but then charge a service fee of around 2% on top of it? (i.e. the market rate that you would find it trading at, plus 2% charge)

[mlc2000]

^ thats right. Its based on the exchange rate on the date of purchase.

Thats why, when travelling abroad, I suggest using CC's over travellers cheques.
When u buy travellers cheques, you buy them at today's exchange rate, not the day you purchase goods with them

[rdtx2002]

The Canada-U.S. trade relationship is the largest ever to exist between two nations. Two-way trade in goods and services between Canada and the United States during 2000 was estimated at approximately C$700 billion, or almost C$2.0 billion per day.

Of Canada's 2000 imports, 74 percent came from the U.S.,
while 86 percent of Canada's total exports were shipped to the United States.

The volume of Canada-U.S. trade last year was far greater than the total amount of Canada's trade with all of its other trading partners combined.

It is difficult to overstate the impact of international trade on the economies of Canada and the United States.

In 2000, 43 percent of Canada's gross domestic product was comprised of exports and over 30 percent of total employment in the country was supported by exports. (Edit: Canada's GDP in 2000 was $1075Billion. In 2005 it was 1368.73Billion. Each year the GDP rises about $70-90B.)

With 86 percent of all Canadian exports last year destined for the US, it is clear that trade with the United States creates an enormous number of jobs for Canadians.

Source :http://www.buyusa.gov/canada/en/traderelationsusacanada.html

So, tell me how this CANNOT affect Canada??

86% of our exports have become 25% more expensive for our customer to purchase, just in the last 10 months.


Do you not think that this will reduce the amount of goods purchased by the US?

If we extrapolate from these numbers that Canada exported roughly $500B /year in goods to the US last year,this year it will cost the importers in the US $6525B to import the same goods.

If the US tanks, we tank too.

The high dollar is great for consumers. Consumers with jobs, that is.

ever heard of foreign investment? Ever heard of Canadian companies reinvesting in their own companies with newer technology from down south?

Unemployment is at a 30+ year low, there are jobs to be had out there. we may have lost manufacturing jobs, but they are made up in other areas like services.

You are forgetting about the commodities that are through the roof. Canada is a commodity based economy.

[mlc2000]

ever heard of foreign investment? Ever heard of Canadian companies reinvesting in their own companies with newer technology from down south?

Unemployment is at a 30+ year low, there are jobs to be had out there. we may have lost manufacturing jobs, but they are made up in other areas like services.

You are forgetting about the commodities that are through the roof. Canada is a commodity based economy.

You're forgetting who we sell those commodities to.

86% Of our exports, including commodities, go to the US.
Commodities like softwood, water, electricity, pertroleum, and hockey players.:cheesygri

The vast majority of those items are 25% more expensive in the past year.

Yes, lets re-invest with newer technolgy from down down south,

to sell to a customer who may or may not be buying, based on the dollar.

What kind of services can you export?

[ian1386]

I'm going back to California for co-op work in January. Every cent the US dollar drops means an instant 1% pay cut for me. :(

[abu_sme]

You're forgetting who we sell those commodities to.

86% Of our exports, including commodities, go to the US.

The vast majority of those items are 25% more expensive in the past year.

Yes, lets re-invest with newer technolgy from down down south,

to sell to a customer who may or may not be buying, based on the dollar.

What kind of services can you export?


It really depends on the commodity too. Things like coal and oil and copper are so hot that it doesn't matter what the US is doing. The hardest hit industry out west is the lumber business. They have had 25% sqeezed out of their margins, and then the US housing market has tanked. I am writing a strategic report about this, and I basically have stated: Batton down the hatches, fire your entire labour force, and hope for the best in a few years.

[rdtx2002]

You're forgetting who we sell those commodities to.

86% Of our exports, including commodities, go to the US.
Commodities like softwood, water, electricity, pertroleum, and hockey players.:cheesygri

The vast majority of those items are 25% more expensive in the past year.

Yes, lets re-invest with newer technolgy from down down south,

to sell to a customer who may or may not be buying, based on the dollar.

What kind of services can you export?

do you even know what R&D is? Spending money on technology will lower cost of production for materials.

why do we need to export services? do you even know what you are talking about? The point is this; it is not time to panic. the economy is still very strong and the dollar WILL go higher.

Also, all the blue chip CAnadian companies are making record profits.

[Rehan]

From http://www.thestar.com/Business/article/274370 :

But yesterday in a speech in New York, Bank of Canada senior deputy governor Paul Jenkins warned that there is a downside.

Jenkins said despite high commodity prices and solid domestic demand, "the magnitude of the (loonie's) recent appreciation appears to be stronger than historical experience would have suggested."

He said the loonie's surge is even stronger than the central bank predicted just three weeks ago, and as such, the Canadian economy is at greater risk of being damaged.

"The combined effect of a weaker U.S. outlook and a higher assumed level for the Canadian dollar implies that net exports will exert a significant drag on the Canadian economy," Jenkins said.

[rubeus]

Where would be the best place to get cdn dollars exchanged for USD.
For a large amount > 10K

[mlc2000]

do you even know what R&D is? Spending money on technology will lower cost of production for materials.

why do we need to export services? do you even know what you are talking about? The point is this; it is not time to panic. the economy is still very strong and the dollar WILL go higher.

Also, all the blue chip Canadian companies are making record profits.

I'm not panicking. I'm cautiously optomistic.
I have to be , as a business owner.

You're saying that manufacturing jobs are replaced by jobs in the service sector. Thats great, but typically those jobs do not pay as well as manufacturing jobs, taking into account there are extremes at the top and bottom of either industry.

Lowering our costs of production is great too, in fact, we have been lagging behind the US for years, productivity-wise.
But if our biggest customer is not buying, or is buying less, its going to be a very long time before you realize a ROI on this capital equipment.

I'd hazard a guess that most companies are sitting on their $$, instead of buying new equipment.

[rdtx2002]

You're saying that manufacturing jobs are replaced by jobs in the service sector. Thats great, but typically those jobs do not pay as well as manufacturing jobs, taking into account there are extremes at the top and bottom of either industry.

i'm more of the mind of robots will be more or less replacing the manufacturing jobs.


Lowering our costs of production is great too, in fact, we have been lagging behind the US for years, productivity-wise.
But if our biggest customer is not buying, or is buying less, its going to be a very long time before you realize a ROI on this capital equipment.

That is the problem. Probably not many companies would want to take on such a capital cost, though it will benefit them in the long run.

[mlc2000]

Where would be the best place to get cdn dollars exchanged for USD.
For a large amount > 10K

Uh, some of the biggest investors in the US, are divesting their holdings inUS Currency in favor of stronger currencies.

Why would you want US greenbacks? Keep your loonies, they're more valuable.


Last month, billionaire investor Warren Buffett said that he was not confident about the strength of the dollar.

"We are still negative on the dollar relative to most other currencies so we bought stocks in companies that earn their money in other currencies," he said of his Berkshire Hathaway investment vehicle.

And Jim Rogers, a former investor partner of George Soros, told the BBC that if he was buying currency now it would be the Chinese renminbi, the Japanese yen and the Swiss franc and not the US dollar.

[mlc2000]

i'm more of the mind of robots will be more or less replacing the manufacturing jobs.

Actually many Canadian manufacturers have lowered their manufacturing costs, by exporting the work to the far east. Maybe we can sell them then robots.
Not likely.




That is the problem. Probably not many companies would want to take on such a capital cost, though it will benefit them in the long run.

I agree, it is most beneficial. But many companies cannot see past 1-2yrs.

[ZenOps]

Hah, and to think of all the hockey players that negotiated to get paid in US dollars.

I'm absolutely loving it. As a computer parts guy, most of this stuff is made in Taiwan but priced in US dollars. So in the last couple months, its almost like making an extra 15% on everything (if the MSRP does not change)

I'd hate to be a Canadian manufacturer right now though.

[thelefteyeguy]

keep on complaining...

Bank of Canada or the Govt can do little right now.

Esp the talk of other countries using the Euro as a peg. That fear alone in combination of oil prices, commodity prices and the weak US ecomony are the factors.

Nothing much our govt could do to influence the currency to be at par for a while.

[actuary]

I'm going back to California for co-op work in January. Every cent the US dollar drops means an instant 1% pay cut for me. :(

Cry me a river. Co-op, what is that, like 6 months top? I work full-time in the US but live in Canada. So all my income is in US dollars, and all my expenses are in Canadian dollars. I am now earning less than I was 5 years ago.

[abu_sme]

Where would be the best place to get cdn dollars exchanged for USD.
For a large amount > 10K

I use XE.com's trading service. Their HQ is in Victoria BC, so it's not like you are handing over your information to some foreign company.

Pretty good service, although I have been burned by the rapid drop of the euro. I traded at about 1.45 and it is now about 1.35...when you buy 2500 euros, that's painful.

[skanji]

anyone know how this will affect CDN interest rates?

[hagbard]

ridiculous!

2$ will never happen

Hard to say. I don't think we're in that much better shape than the U.S. We're all going down the crapper.

[rdtx2002]

anyone know how this will affect CDN interest rates?

BOC said that it will most like hold rates until 2009

[Kerlo]

we are dropping like a rock . . .

1.00 CAD = 1.07930 USD

What's going on?

[ullyeus]

we are dropping like a rock . . .

1.00 CAD = 1.07930 USD

What's going on?

normal fluctuations.

[Stoe99]

I hope this keeps going up! I hope it closes at 1.10 for the weekend, i am going shopping on the weekend in Buffalo :D:D:D:D:D:D:D:D

[Kerlo]

A 2 cent rise and fall within 24 hours doesn't seem like "normal" fluctuations to me . . .

[Shaner]

A 2 cent rise and fall within 24 hours doesn't seem like "normal" fluctuations to me . . .

It has been normal lately.

[Kasakato]

I doubt it. I think the government would step in along with the Bank of Canada (not the government) and raise interest rates to keep the dollar from going anywhere near US$1.50.

Lowering interest would cause it to fall; not raising.

[Kasakato]

If the US goes into the tank, so do we.

Maybe 5 years ago, but not anymore. The US dollar is down, but our Canadian is still going up. They have parted ways.

[CanadaBoy]

1.06829

[Kommander_KornFlakes]

Oooooops!

$1 Loonie = $1.0668 US at 5:45pm Wednesday, we went down from $1.10 :mad:

-

[mlc2000]

It was briefly at 1.10 in overseas trading.
Not when our markets opened here

a 2 cent fluctuation is enough to cover the 2% charge on exchange that the CC companies charge.


I'm loving the exchange, bought a new Blu Ray player for $450CAD , after shipping,duties and taxes. Futureslop sells the exact same thing, for $625 taxes in.

[najibs]

ridiculous!

2$ will never happen

By the time it happens you'll surely be permanently banned, I can guarantee you that! Heck, I'm no economist, but I predict you'll be permanently banned before it hits 1.17 :twisted:

[CanadaBoy]

It was briefly at 1.10 in overseas trading.
Not when our markets opened here

a 2 cent fluctuation is enough to cover the 2% charge on exchange that the CC companies charge.


I'm loving the exchange, bought a new Blu Ray player for $450CAD , after shipping,duties and taxes. Futureslop sells the exact same thing, for $625 taxes in.

Or you can get HD-DVD for $100

( BB US had em)

[ullyeus]

A 2 cent rise and fall within 24 hours doesn't seem like "normal" fluctuations to me . . .

I can't do anything to make you more aware of your surroundings.

[rdtx2002]

86 percent of Canada's total exports were shipped to the United States.


now it's only 76%

Canadian exports to China grow: StatsCan
Imports from the Asian nation also jump
Reuters
Published: Thursday, November 08, 2007

OTTAWA -- Canada has reduced its dependence on the U.S. economy by boosting its exports to other countries, particularly China, which is hungry for Canadian oil and other commodities, a Statistics Canada report said on Thursday.

Canada's exports to the United States as a portion of total exports fell to 76% in the first seven months of this year from a peak of 84% in 2002, with China explaining much of the shift.

"The recent shift to increased trade with the rest of the world was well-timed, given the onset of the housing-induced slowdown south of the border," StatsCan said in its report.

Canada's economy has so far showed little pinch from the U.S. subprime mortgage meltdown and many economists say that cross-border contagion is no longer a given.
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Canadian exports to China in the January-July period jumped 43% from a year earlier, while imports climbed only 17%.

Exports to countries other than the United States grew 68% between 2002 and 2007, while those to the United States were up just 5%, according to StatsCan.

"All regions of Canada have benefited from this shift in exports toward non-U.S. countries," it said.

The rate of export growth this year surpasses that of any other Group of Seven nation and puts China neck-and-neck with Japan as Canada's third-largest export market after the United States and the European Union.

Demand from China's booming economy for Canada's crude oil, metals, potash and canola -- combined with higher prices for those products -- propelled the sharp rise in exports.

Canada's exports to China nearly doubled in the period from 2002 to 2006 to $8-billion (US$8.6-billion).


© Reuters 2007

http://www.canada.com/nationalpost/financialpost/story.html?id=edcff1ba-ccc7-48ef-a322-e4b2d940d6ea&k=27119

[mlc2000]

Or you can get HD-DVD for $100

( BB US had em)

Yea those $100 players were crap.

I will be getting HD-DVD as well, but my $ is better spend on quality.

[mlc2000]

Well, its good news that we've got other trading partners.

Still 76% is massive, compared to China.
As most economics profs have said....All things being equal....

If, for the sake of simplicty, we say that CHina is the other 24%,
that huge increase of 43% over last year means we went from 17% to 24%.
A big jump no doubt, but that would account for the 7% drop in US exports.

I know its simplistic thinking....but you get the idea.

Now, for exporting goods to China, most of it runs by rail to the ports.
(Now you're getting into my expertise. )
There are massive delays through-out the supply chain, at railways and the ports,
so much that the time/mapower/costs to ship to china, versus US are very significant. The very proximity to the US makes them an ideal trading partner.

Its just alot easier dealing with the US.


A 5% increase of a very big number is still alot more than a 68% increase from a smaller number.
It sort of reminds me of the speech a colleague gave at an awards dinner, when he received the award for most improved sales rep. His response?
"Well, I guess this means I really sucked last year". :lol:




now it's only 76%

Canadian exports to China grow: StatsCan
Imports from the Asian nation also jump
Reuters
Published: Thursday, November 08, 2007

OTTAWA -- Canada has reduced its dependence on the U.S. economy by boosting its exports to other countries, particularly China, which is hungry for Canadian oil and other commodities, a Statistics Canada report said on Thursday.

Canada's exports to the United States as a portion of total exports fell to 76% in the first seven months of this year from a peak of 84% in 2002, with China explaining much of the shift.

"The recent shift to increased trade with the rest of the world was well-timed, given the onset of the housing-induced slowdown south of the border," StatsCan said in its report.

Canada's economy has so far showed little pinch from the U.S. subprime mortgage meltdown and many economists say that cross-border contagion is no longer a given.
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Font:

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Canadian exports to China in the January-July period jumped 43% from a year earlier, while imports climbed only 17%.

Exports to countries other than the United States grew 68% between 2002 and 2007, while those to the United States were up just 5%, according to StatsCan.

"All regions of Canada have benefited from this shift in exports toward non-U.S. countries," it said.

The rate of export growth this year surpasses that of any other Group of Seven nation and puts China neck-and-neck with Japan as Canada's third-largest export market after the United States and the European Union.

Demand from China's booming economy for Canada's crude oil, metals, potash and canola -- combined with higher prices for those products -- propelled the sharp rise in exports.

Canada's exports to China nearly doubled in the period from 2002 to 2006 to $8-billion (US$8.6-billion).


© Reuters 2007

http://www.canada.com/nationalpost/financialpost/story.html?id=edcff1ba-ccc7-48ef-a322-e4b2d940d6ea&k=27119

[thelefteyeguy]

the sky is falling :(

[rdtx2002]

Well, its good news that we've got other trading partners.

Still 76% is massive, compared to China.
As most economics profs have said....All things being equal....

If, for the sake of simplicty, we say that CHina is the other 24%,
that huge increase of 43% over last year means we went from 17% to 24%.
A big jump no doubt, but that would account for the 7% drop in US exports.

I know its simplistic thinking....but you get the idea.

Now, for exporting goods to China, most of it runs by rail to the ports.
(Now you're getting into my expertise. )
There are massive delays through-out the supply chain, at railways and the ports,
so much that the time/mapower/costs to ship to china, versus US are very significant. The very proximity to the US makes them an ideal trading partner.

Its just alot easier dealing with the US.


A 5% increase of a very big number is still alot more than a 68% increase from a smaller number.
It sort of reminds me of the speech a colleague gave at an awards dinner, when he received the award for most improved sales rep. His response?
"Well, I guess this means I really sucked last year". :lol:

as long as Canada keeps diversifying, then the reliance on the USA decreases, which in turn will decrease the changes of the USA taking us down with them.