We are all witnessing a historical slide of the Canadian Dollar against the US Dollar, and perhaps this could be heading to its lowest value I've ever witnessed while in US (1 USD = 1.35 CAD).
Due several divesting activities from foreign markets, the USD is skyrocketing, it might not retract soon to my understanding (at till Xmas).
I believe TK or in his thread some one else predicted earlier that the oil will go to $60 which I did not believe at all and now is reality.
- Where the Dollar is heading to ? (assumptions).
- Would there be a price correction from retailers ? else how would they survive ?
- I believe Gas is now on par with NY state ?
- Any symptoms, the slide will boost the manufacturing to head north from the border ?
- Travel (shopping) to US will decrease ( as happened to me), feel like visiting EU ?
- How are currency exchange folks coping up with this ? some hestitation would've costed them a big dent ?
I work in US Finance (tech) sector and I am not at all happy with what is happening ? I hope I couldn't expect big enthusiasm among folks in local finance, manufacturing and other export related sector.
It is more of a time to cut down cost (non basic) at the individual level (corps. have already axed the cost to their best level) than hitting a dreaded territory.
Indian currency and market is still considered a joke here perhaps, there will never be any reference in the media when speaking about Asian market, no reference to the desi millionaires.
Toss some ideas on the cost savings from an individual's point......
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Isn't CAD going weaker compared to USD good for Canadian exports and industry?
- Yes but
- Our importer is running into a great credit crisis that would prevent their to a greater extent.
- The business that benefit the lower dollar values have already taken huge hit, given the credit crisis it would be difficult to rebuild it.
- Given Geographical location, we aren't able to excel to export to the rest of the world.
- Cost of fuel has reduced considerably, this will make shipping inexpensive, hence importing from distance wouldn't be a big deal for our neighbor.
Quote:
Originally posted by viggy
Isn't CAD going weaker compared to USD good for Canadian exports and industry?
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
- Yes but
- Our importer is running into massive credit crisis that might affect their buying capacity to a good extent.
- The business that benefit the lower dollar values have already taken huge hit, given the credit crisis it would be difficult to rebuild it.
- Given Geographical location, we aren't able to excel to export to the rest of the world.
- Cost of fuel has reduced considerably, this will make shipping inexpensive, hence importing from distance wouldn't be a big deal for our neighbor.
Quote:
Originally posted by viggy
Isn't CAD going weaker compared to USD good for Canadian exports and industry?
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
- Yes but
- Our importer is running into massive credit crisis that might affect their buying capacity to a good extent.
- The business that benefit the lower dollar values have already taken huge hit, given the credit crisis it would be difficult to rebuild it.
- Given our Geographical location, we aren't able to excel to export to the rest of the world.
- Cost of fuel has reduced considerably, this will make shipping inexpensive, hence importing from distance wouldn't be a big deal for our neighbor.
Quote:
Originally posted by viggy
Isn't CAD going weaker compared to USD good for Canadian exports and industry?
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Location: carl sagan's universe
Posted on: 27-10-08 09:49:54
Quote:
Originally posted by viggy
Isn't CAD going weaker compared to USD good for Canadian exports and industry?
is there any industry left in Canada? The high dollar in between led to so many lay-offs in the manufacturing sector...
Location: carl sagan's universe
Posted on: 27-10-08 10:27:56
Quote:
Originally posted by JRF
We are all witnessing a historical slide of the Canadian Dollar against the US Dollar, and perhaps this could be heading to its lowest value I've ever witnessed while in US (1 USD = 1.35 CAD).
Due several divesting activities from foreign markets, the USD is skyrocketing, it might not retract soon to my understanding (at till Xmas).
I believe TK or in his thread some one else predicted earlier that the oil will go to $60 which I did not believe at all and now is reality.
- Where the Dollar is heading to ? (assumptions).
- Would there be a price correction from retailers ? else how would they survive ?
- I believe Gas is now on par with NY state ?
- Any symptoms, the slide will boost the manufacturing to head north from the border ?
- Travel (shopping) to US will decrease ( as happened to me), feel like visiting EU ?
- How are currency exchange folks coping up with this ? some hestitation would've costed them a big dent ?
I work in US Finance (tech) sector and I am not at all happy with what is happening ? I hope I couldn't expect big enthusiasm among folks in local finance, manufacturing and other export related sector.
It is more of a time to cut down cost (non basic) at the individual level (corps. have already axed the cost to their best level) than hitting a dreaded territory.
Indian currency and market is still considered a joke here perhaps, there will never be any reference in the media when speaking about Asian market, no reference to the desi millionaires.
Toss some ideas on the cost savings from an individual's point......
1. The CAD is considered on the world markets as a petro/resource-currency. If oil/resource prices slide so will the CAD.
2. The USD is currently gaining ground because the world is in a financial mess brought about by the sophistry and chicanery of a handful that has had the sub-prime mortgage mess in the US metastasize to a cancerous worldwide financial epidemic. The US is considered the last bastion of capitalism and despite its woes, the afflictions of the rest of the world are considered on the world scene to be even worse. Over here we are constantly bombarded with the USD 700bn bailout , but in UK, Spain, France, Nigeria, Indonesia, India, M.E. Hong Kong, the news also reports constantly that Europe put together a package of USD 2.3 trillion, which is why people think the USD will reign supreme for the time being in the short term.The rest of the world counts for zilch for the watchers in countries mentioned before.
That Japan despite its falling markets is seeing its currency gain strength is another story.
So the notion out there is even if the US cuts rates on Wednesday, and the Euro still gives better rates on savings, the USD will still attract more foreign buyers because worldwide the big daddies still beleive in the strength of the US more than in the Euro countries.
3. Price correction from retailers- possibly will take place.
4. Gas prices no idea- google, it's apodictic.
5. Do companies have money to revitalize manufacturing here? Is there demand?Might take a while for this to occur, but if CAD remains low for a while and the outlook for oil and resources are also low for the next few years- this will surely prompt some manufacturing to be shifted here.
6. Travel shopping for some items are still better South. EU- the Euro is at 1.60 CAD, higher than a few months ago when it was at 1.50. Financially doesn't make sense to me as one has to pay the airfare as well. Tourism will also cost higher though I haven't checked. It is possible that air/hotel/aparthotel rates may have come down to accommodate the downswing in spending money.
7. What do you mean by currency exchange people? The traders? I had stopped trading for a while in between and the last 2 months I have resumed and in 2 months have made up the losses I suffered all of last year. I ain't complaining.
8. India was a story everybody wanted to hear even in March/April after markets there tumbled. I used to give guest lectures on the Indian economy at Universities and there was a time upto 200 hundred people would attend the lecture. Last week I gave a lecture at well-known University here and believe you me there were only 17 (that's seventeen) people!
At any rate , India and China are text-book material even today. So is Brazil, Turkey, Nam, Mexico, South Korea etc, but you're right, people are more interested in Can, US and Europe than anywhere else now.
However, just as a consolation, even the profs, Bay Street guys, fund managers say that the US and Can markets are behaving in a Mickey Mouse manner.
