Usd/cad

I should have thought of that...cool....I just checked the chart and agree...I will pass that along to my friend.

What is the likelyhood that the Looney will hit parity with the Greenback?

I appreciate the group comments....
 
Not very good IMHO, this is a commodity thing, a commodity
surge is usually followed by higher int rates, lower stocks
and an economic slowdown. C buck will continue up
as long as commodities continue up, I give it another
6 months and possible 1.1.

Quote from bcavender:

I should have thought of that...cool....I just checked the chart and agree...I will pass that along to my friend.

What is the likelyhood that the Looney will hit parity with the Greenback?

I appreciate the group comments....
More...
 
Quote from gwac:

Not very good IMHO, this is a commodity thing, a commodity
surge is usually followed by higher int rates, lower stocks
and an economic slowdown. C buck will continue up
as long as commodities continue up, I give it another
6 months and possible 1.1.
More...

Yes. I'm expecting a CAD reversal will be accompanied by an equities sell-off and re-steepening of the yield curve. Oil curve will also revert to backwardated ...
 
Quote from gwac:

Canadian had no business at 1.1191 in 1991, our central
bank was fighting imaginary inflation by raising interest rates,
which cause the c buck to surge. When the economy went south
so did our loonie....We spent the next 5 years repairing
the damage done to our economy by our stupid central banker.
That is why went to 1.6.
More...

I've made some little research of the interest rates both in US and CA. Let the Sep-Oct 1989 would be the start point since that date both US and CA started to decrease their rates...both did it slowly until Aug 1991 when US continued to decrease its rate but CA started to increase it and the peak of their difference was in 1991...guess what - in Nov.:) In that month BoC increased the rate difference up to 4 points, what made the USD/CAD monthly trend turn around...to the upside :) There was something serious happend in those time...
 
For your reference:

GC: Yellow

CD: Blue

CRB: Green

All three are tied together in this comm bull market. Will be sweet once they break.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=998520>
 

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I do not understand your question.

Bank of Canada went to far, our rates topped
out and our economy went south big time, so $/cad
reversed and continued going up for 11years, until
commodities started surging.





Quote from OfmY:

I've made some little research of the interest rates both in US and CA. Let the Sep-Oct 1989 would be the start point since that date both US and CA started to decrease their rates...both did it slowly until Aug 1991 when US continued to decrease its rate but CA started to increase it and the peak of their difference was in 1991...guess what - in Nov.:) In that month BoC increased the rate difference up to 4 points, what made the USD/CAD monthly trend turn around...to the upside :) There was something serious happend in those time...
More...
 
Quote from OfmY:

I've made some little research of the interest rates both in US and CA. Let the Sep-Oct 1989 would be the start point since that date both US and CA started to decrease their rates...both did it slowly until Aug 1991 when US continued to decrease its rate but CA started to increase it and the peak of their difference was in 1991...guess what - in Nov.:) In that month BoC increased the rate difference up to 4 points, what made the USD/CAD monthly trend turn around...to the upside :) There was something serious happend in those time...
More...

I remember hearing rumours back then that Mulroney made a secret deal with the US in order to get them to accept NAFTA. He made some kind of promise that he would keep the Canadian Dollar high for a period of time so the Americans wouldn't look bad by losing jobs to Canada. Perhaps he was manipulating the interest rates in order to do this.

If he did something like this it may have had some short term effects but in the long term, NAFTA has and will benefit all the countries involved.
 
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