Cad $
May 11th 2006 | 9:38 am
#1
Thread Starter
Forum Regular
Joined: Jan 2006
Posts: 61
From: London -> San Francisco -> Montreal -> Vancouver
Cad $
For those of you watching the CAD $, the picture is starting to look "less bad". The experts are showing that the 50 day moving average is showing a weaker CAD $ (ie more pounds per dollar) but only marginally.
I have a chunk of US$ in my US savings account and my UK house proceeds/savings UK Pounds so i feel a little schizophrenic watching which currency is heading in which direction and which benefits me the most. Just small changes in the exchange rate can have huge consequences to the number of CAD $ that I will have to play with when I get to Canada.
Ultimately, I'm just willing-on the decline of the CAD $. Please join me!!!
I have a chunk of US$ in my US savings account and my UK house proceeds/savings UK Pounds so i feel a little schizophrenic watching which currency is heading in which direction and which benefits me the most. Just small changes in the exchange rate can have huge consequences to the number of CAD $ that I will have to play with when I get to Canada.
Ultimately, I'm just willing-on the decline of the CAD $. Please join me!!!
May 11th 2006 | 9:56 am
#2
Lost in BE Cyberspace
Joined: May 2004
Posts: 9,707
Re: Cad $
Hi
Sorry, but I live here and love the Canadian $ rising against the US it helps to make the imports cheaper. US is travel is a lot better price with $ at .91 compared to when it was .66 US.
Originally Posted by Tim_in_SF
For those of you watching the CAD $, the picture is starting to look "less bad". The experts are showing that the 50 day moving average is showing a weaker CAD $ (ie more pounds per dollar) but only marginally.
I have a chunk of US$ in my US savings account and my UK house proceeds/savings UK Pounds so i feel a little schizophrenic watching which currency is heading in which direction and which benefits me the most. Just small changes in the exchange rate can have huge consequences to the number of CAD $ that I will have to play with when I get to Canada.
Ultimately, I'm just willing-on the decline of the CAD $. Please join me!!!
I have a chunk of US$ in my US savings account and my UK house proceeds/savings UK Pounds so i feel a little schizophrenic watching which currency is heading in which direction and which benefits me the most. Just small changes in the exchange rate can have huge consequences to the number of CAD $ that I will have to play with when I get to Canada.
Ultimately, I'm just willing-on the decline of the CAD $. Please join me!!!
May 11th 2006 | 10:58 am
#3
Joined: Apr 2005
Posts: 9,606
Re: Cad $
Originally Posted by Tim_in_SF
Ultimately, I'm just willing-on the decline of the CAD $. Please join me!!!
May 11th 2006 | 11:16 am
#4
Thread Starter
Forum Regular
Joined: Jan 2006
Posts: 61
From: London -> San Francisco -> Montreal -> Vancouver
Re: Cad $
Originally Posted by PMM
Hi
Sorry, but I live here and love the Canadian $ rising against the US it helps to make the imports cheaper. US is travel is a lot better price with $ at .91 compared to when it was .66 US.
Sorry, but I live here and love the Canadian $ rising against the US it helps to make the imports cheaper. US is travel is a lot better price with $ at .91 compared to when it was .66 US.
I guess you don't work for a company that exports goods and services... which are becoming more and more expensive/less competitive. The strength of the CAD $ will soon start impacting jobs in these industries.
May 11th 2006 | 11:41 am
#5
Mans
Joined: Jul 2005
Posts: 343
From: Oakville
Re: Cad $
Originally Posted by Souvenir
You and me both bro. My salary is paid in sterling.
I'm earning sterling too.......so i'm "willing" all the way with you guys
Looks like Bank of England is close to raing interst rate by 0.25% very soon.....with a possible further 0.25% by end of the year/next year......that will push the pound higher
May 11th 2006 | 12:00 pm
#6
BE Forum Addict
Joined: Apr 2005
Posts: 4,109
From: Saskatoon, Saskatchewan
Re: Cad $
Doesn't seem to be any sign of the US dollar slide ending, so that should pull the Canadian dollar downwards with it for a while. Was getting close to $2.08 to the pound at times today, not sure if it went over at any point.
IMHO the real question is what the Canadian government will do when the US dollar sinks lower than the loonie. Will they keep raising interest rates to control inflation, or hold them so as not to raise the currency even higher?
Maybe it won't matter if America goes into a recession and the price of oil drops back to $40 a barrel.
IMHO the real question is what the Canadian government will do when the US dollar sinks lower than the loonie. Will they keep raising interest rates to control inflation, or hold them so as not to raise the currency even higher?
Maybe it won't matter if America goes into a recession and the price of oil drops back to $40 a barrel.
May 12th 2006 | 8:17 pm
#7
Forum Regular
Joined: Jan 2006
Posts: 276
From: Okotoks AB
Re: Cad $
Originally Posted by MarkG
Doesn't seem to be any sign of the US dollar slide ending, so that should pull the Canadian dollar downwards with it for a while. Was getting close to $2.08 to the pound at times today, not sure if it went over at any point.
IMHO the real question is what the Canadian government will do when the US dollar sinks lower than the loonie. Will they keep raising interest rates to control inflation, or hold them so as not to raise the currency even higher?
Maybe it won't matter if America goes into a recession and the price of oil drops back to $40 a barrel.
IMHO the real question is what the Canadian government will do when the US dollar sinks lower than the loonie. Will they keep raising interest rates to control inflation, or hold them so as not to raise the currency even higher?
Maybe it won't matter if America goes into a recession and the price of oil drops back to $40 a barrel.
May 12th 2006 | 8:22 pm
#8
jacquidur
Joined: Oct 2005
Posts: 58
From: Calgary
Re: Cad $
2.1 this morning. Fingers crossed for higher.
May 13th 2006 | 9:00 am
#9
Forum Regular
Joined: Jan 2006
Posts: 43
Re: Cad $
Hi.
Got to change some serious funds ( well for us anyway...
) before too long .....sssssoooooo long may the rise of the £ continue!!!!
Roll on $2.15......or more
Bo
Got to change some serious funds ( well for us anyway...
) before too long .....sssssoooooo long may the rise of the £ continue!!!!Roll on $2.15......or more
Bo
May 14th 2006 | 7:19 pm
#10
Kelly
Joined: Jan 2006
Posts: 613
From: Oro-Medonte, Ontario
Re: Cad $
I see the loonie is almost 2.11 to the £ now 
I was reading on the BBC site that the US$ is weakening against all currencies as Bush wants a weak economy so it will be better for exports. Also why would a possible interest rate rise over here affect the £ against the loonie?
Could anyone explain in lalayman'serms why these two situations will affect the exchange rate as I'm a little ignorant on such matters
Cheers
I was reading on the BBC site that the US$ is weakening against all currencies as Bush wants a weak economy so it will be better for exports. Also why would a possible interest rate rise over here affect the £ against the loonie?
Could anyone explain in lalayman'serms why these two situations will affect the exchange rate as I'm a little ignorant on such matters
Cheers
May 14th 2006 | 7:20 pm
#11
Kelly
Joined: Jan 2006
Posts: 613
From: Oro-Medonte, Ontario
Re: Cad $
Originally Posted by kellydrew
I see the loonie is almost 2.11 to the £ now
I was reading on the BBC site that the US$ is weakening against all currencies as Bush wants a weak economy so it will be better for exports. Also why would a possible interest rate rise over here affect the £ against the loonie?
Could anyone explain in lalayman'serms why these two situations will affect the exchange rate as I'm a little ignorant on such matters
Cheers
I was reading on the BBC site that the US$ is weakening against all currencies as Bush wants a weak economy so it will be better for exports. Also why would a possible interest rate rise over here affect the £ against the loonie?
Could anyone explain in lalayman'serms why these two situations will affect the exchange rate as I'm a little ignorant on such matters
Cheers
Think that should be LAYMAN'S
May 14th 2006 | 10:33 pm
#12
BE Forum Addict
Joined: Apr 2005
Posts: 4,109
From: Saskatoon, Saskatchewan
Re: Cad $
Also why would a possible interest rate rise over here affect the £ against the loonie?
Also speculators borrow money in countries with low interest rates and invest them in countries with higher interest rates: if you're borrowing a few billion dollars at 1% from Japan and getting 5% on that money in the UK, that's a sizable amount of cash for doing nothing (other than taking the risk that Japanese rates will rise). When people convert that money from Yen to pounds it increases demand for pounds and the relative value rises as a result.
There are plenty of other things that affect the value of a currency, but in general higher rates mean an increase in the value relative to other currencies. The US dollar is a glaring exception right now, having dropped substantially even after more than a tripling of interest rates.
May 15th 2006 | 12:10 am
#13
Kelly
Joined: Jan 2006
Posts: 613
From: Oro-Medonte, Ontario
Re: Cad $
Originally Posted by MarkG
Because the lower interest rates go, the more people borrow, the more pounds get printed, and the more the value of the pound drops due to oversupply. Similarly, if rates rise, more people repay their debts, reducing the supply of pounds and increasing their value.
Also speculators borrow money in countries with low interest rates and invest them in countries with higher interest rates: if you're borrowing a few billion dollars at 1% from Japan and getting 5% on that money in the UK, that's a sizable amount of cash for doing nothing (other than taking the risk that Japanese rates will rise). When people convert that money from Yen to pounds it increases demand for pounds and the relative value rises as a result.
There are plenty of other things that affect the value of a currency, but in general higher rates mean an increase in the value relative to other currencies. The US dollar is a glaring exception right now, having dropped substantially even after more than a tripling of interest rates.
Also speculators borrow money in countries with low interest rates and invest them in countries with higher interest rates: if you're borrowing a few billion dollars at 1% from Japan and getting 5% on that money in the UK, that's a sizable amount of cash for doing nothing (other than taking the risk that Japanese rates will rise). When people convert that money from Yen to pounds it increases demand for pounds and the relative value rises as a result.
There are plenty of other things that affect the value of a currency, but in general higher rates mean an increase in the value relative to other currencies. The US dollar is a glaring exception right now, having dropped substantially even after more than a tripling of interest rates.
May 15th 2006 | 12:11 am
#14
Forum Regular
Joined: Nov 2005
Posts: 39
From: Bridgend, South Wales, UK
Re: Cad $
Originally Posted by MarkG
Because the lower interest rates go, the more people borrow, the more pounds get printed, and the more the value of the pound drops due to oversupply. Similarly, if rates rise, more people repay their debts, reducing the supply of pounds and increasing their value.
Also speculators borrow money in countries with low interest rates and invest them in countries with higher interest rates: if you're borrowing a few billion dollars at 1% from Japan and getting 5% on that money in the UK, that's a sizable amount of cash for doing nothing (other than taking the risk that Japanese rates will rise). When people convert that money from Yen to pounds it increases demand for pounds and the relative value rises as a result.
There are plenty of other things that affect the value of a currency, but in general higher rates mean an increase in the value relative to other currencies. The US dollar is a glaring exception right now, having dropped substantially even after more than a tripling of interest rates.
Also speculators borrow money in countries with low interest rates and invest them in countries with higher interest rates: if you're borrowing a few billion dollars at 1% from Japan and getting 5% on that money in the UK, that's a sizable amount of cash for doing nothing (other than taking the risk that Japanese rates will rise). When people convert that money from Yen to pounds it increases demand for pounds and the relative value rises as a result.
There are plenty of other things that affect the value of a currency, but in general higher rates mean an increase in the value relative to other currencies. The US dollar is a glaring exception right now, having dropped substantially even after more than a tripling of interest rates.
May 15th 2006 | 12:21 am
#15
BE Forum Addict
Joined: Apr 2005
Posts: 4,109
From: Saskatoon, Saskatchewan
Re: Cad $
Not that I'm an expert or anything but the implication as I read it is that the tripling of interest rates are all that has stood between the US and an even more dramatic slide in the dollar.
What I don't really understand is why CAD seems to follow the USD down
Also commodities are generally priced in dollars, so if the price of those commodities stays the same in dollars and the dollar drops, the value relative to other currencies drops. Again reducing the value of Canadian exports.
