The TWs

What does that mean?

Novocastrian

Eh? What part don't you understand?

The TWs

ok... just read this http://www.canada.com/vancouversun/n...49e374&k=19019

and now understand more...

basically I'm screwed and even waiting until late fall I'll probably be just as screwed...can't believe how much we're be losing to the ether!

Novocastrian

Probably not a great deal. However the Canadian GDP grew by 3.7% in the first quarter of 2007 cf 0.6% in the US in the same period. (Despite the fact the economies are very closely linked). I suggest all this means that Canada is performing well at the moment and the likely trend against the pound too is going to be in the direction of a stronger Cdn$.

For what that's worth.

nivlad

and the $ keeps strengthening, $2.103 - hell!

nivlad

According to HiFX the interbank rate is below $2:10, bloody hell

steve666

http://ca.news.yahoo.com/s/reuters/c...ollar_cibc_col

Danny B

$2.10 today
That's it, I am definitely changing everything as soon as the house is sold, I just hope it's above $2 in a months time...

Danny B

My weekly email

Bank of Canada hints at higher rates

Sterling continued its decline against the Loonie. On Tuesday morning it perked briefly above $2.15 but then fell sharply back. It drifted lower for the rest of the week and was trading below $2.10 this Monday morning.

The US is not alone in presenting a confusing picture of its economy. Last week's data showed that incomes are down but personal spending is up. Employment growth and consumer confidence are still healthy but consumers have no faith in the residential property market and first quarter GDP growth was slower than previously thought. The situation makes life difficult for investors: Will growth rebound or will ailing house prices remove a crucial pillar of the money-go-round? Opinions were not strong enough last week to take the US Dollar anywhere at all. Over the seven days it was virtually unchanged against both the Euro and the Pound. The steady feed of good-news-bad-news leaves investors uncertain about what to do next. So they do nothing.

The Canadian Dollar's advance last week was driven, as much as anything, by the Bank of Canada's policy announcement. There were two particular phrases that set the pulse racing; "economic growth and inflation... have been stronger than the Bank was expecting" and "some increase in the target for the overnight rate may be required in the near term..." The statement as a whole was surprisingly hawkish and the "near term" bit especially so. The Loonie hit a 30 year high against the US Dollar and took it closer to last spring's long term high against the Pound. Analysts are now guessing that the next two BOC meetings, in July and September, could both deliver rate increases, taking the Overnight Rate to 4.75 per cent.

Presumably reinvigorated by their long weekend, investors had another look at the US$2 barrier last Tuesday but they did not even come close. $1.99 was as high as the move reached and it was followed by the usual disappointment slump. As the shortened week drew to a close Sterling began the recovery process and had managed to make it back to Bank Holiday levels by the beginning of this week. Some of that buying will have been by investors keen to take a little "insurance" on board before Thursday's Bank of England interest rate decision. Although there is no expectation of a Bank Rate move above 5.50 per cent the market has learnt to prepare itself for surprises. That preparation includes not being short of Sterling on the day of the rate announcement.

So what to do?

Buyers of the Canadian Dollar should cover at least half of their requirement promptly in the forward market.

geedee

Hello all.

We've just had our visas / work permits approved. We've been looking at houses in Montreal since December last year.

I sold my house in the UK in January and have some savings now to buy in Canada.

I have been horrified by the amount the pound has dropped against the CAD!

2.35 in Feb, 2.1 today.... I've "lost" a lot of money!

However.... one of the houses I've been looking at has dropped by over 60,000 dollars in the last three months. The agent admits it's a buyers market... so don't despair.... lose on one hand, win on another. The bottom line is it's not the money. It's the life!

Souvenir

It has dropped sharply recently but, then again, it rose sharply after a year or so of horribly nasty rates. Base your long-term calculations on 2.2.

House prices in Quebec are expected to fall, BTW. Don't buy a house here as an investment. Buy something you want to live in and can afford.

geedee

Thanks for the advice, Souvenir.

I've seen quite a few large price drops for Montreal on mls.ca.

We're now thinking of renting for 6 months to see how things pan out.

Houses seem to be tanking everywhere, US, UK, Spain, France, Ireland, Eastern Europe... I'm thinking that buying at the top is a dumb move, but the exchange rate just seems to be swallowing up any gains!

Steve_P

You haven't lost any money at all.

You're just not going to make as much as you expected.

Danny B

I actually went up to $2.11 today

Notiaink...honest

Exactly.


This time last year it was 2.04

It goes up and down, its down , but it will go up again.

http://www.ratesfx.com/cgi-bin/datav...=CAD&t=52&l=en