Posted on: 27-11-05 00:09:42
The US $ is on the slide against the CAD. This may hamper investments in USD. We do have knowledgeable people on the forum and if they could throw some light on the trends that we might see or likely to see in the near times?
We may take into account the December end (Tax Planning) and the planned investments in RRSP and RESP and other avenues and also the likely turbulence in the Ottawa politics and a possible election round the corner......
Bhishma.
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If you are worried about USD/CAD you can hedge your bets by buying a forward contract. Currency exchange shouldn't influence your investment decision. You should base it on economic stability and valuations.
US is an unstable economy with a trade deficit. It is involved in a protracted war. The real estate bubble is in danger of bursting. But then US is the only remaining superpower and can maybe invade and occupy any country if it's economic needs necessitate that action.
T
Is it not worrying that with Canada having such a large dependence on the US economy, when the US economy sinks, so will Canada's?
Quote:
Orginally posted by alexm
Is it not worrying that with Canada having such a large dependence on the US economy, when the US economy sinks, so will Canada's?
Not really. US is pouring billions in war. That would eat away big chunk causing bigger deficit. Canada is not involved in these things.
The greenback is weak becuase that would increase exports such as arms(from US). Exports bring big money to the exporting firms. INR is low as it would help IT majors to rake in big profits. If the rupee becomes strong, that would hurt those IT firms.
DIO
US $ against other currencies has not apprreciated that much but against CAD $ it has appreciated more than expected.
If the reason of US trade deficit hold true for CAD$ then it should also be work similar for all other currencies.
Quote:
Orginally posted by Desi # 1
US $ against other currencies has not apprreciated that much but against CAD $ it has appreciated more than expected.
??? Not sure about 'appreciation' of the US buck, this chart seems to suggest a continued decline since about November 20.
http://ca.finance.yahoo.com/m5?a=1&s=CAD&t=USD
While trying to read anything into Canadian exchange rates, you'd probably also need to factor in the impact of political factors with the government set to fall this evening.
Quote:
Orginally posted by alexm
Is it not worrying that with Canada having such a large dependence on the US economy, when the US economy sinks, so will Canada's?
Any 'sinking' of the US economy will impact 'many' economies around the world.......not just Canada!
An interesting article on today's Financial Post........
http://www.canada.com/nationalpost/financialpost/story.html?id=7c58f93d-7e80-4129-a9fb-eb905047f451&k=80662
Quote:
Orginally posted by crenshaw
??? Not sure about 'appreciation' of the US buck, this chart seems to suggest a continued decline since about November 20.
http://ca.finance.yahoo.com/m5?a=1&s=CAD&t=USD
While not denying what you are saying Crenshaw - this chart seems odd to me - it shows USD went down to almost 89.50 (about 1 USD = 1.1175 CAD sometime around Oct 22nd! I have not come across such a spike even if it was momentarily there!
Chandresh
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Chandresh
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