Canadian dollar on a roll again

[mirror]

Up yesterday, up today, where she'll stop, nobody knows:

Stocks mixed: energy gains but financials lower after disappointing BMO report

Malcolm Morrison

Canadian Press

August 23, 2005

TORONTO (CP) - The Toronto market moved slightly lower Tuesday morning as the financial sector weakened on disappointing results from Bank of Montreal, trumping energy-sector gains as the price of oil ticked higher.

New York markets were lower as higher crude prices discouraged investors. Toronto's S&P/TSX composite index was down 4.25 points at 10,521.24.

Bank of Montreal shares lost $1.36 to $58.64 after the bank reported its third-quarter profit declined 16 per cent to $541 million. Cash earnings per share came in at $1.08, four cents less than analysts expected, according to Thomson Financial.

Elsewhere in the sector, Scotiabank - which reports next week - slipped 29 cents to $40.91.

The TSX Venture Exchange edged 2.8 points lower to 1,917.27.

The Canadian dollar rose 0.29 of a cent to 83.47 cents US.

[mirror]

Canadian Dollar Rises for a Third Day on Growth, Rate Outlook

Buy Canadian dollar vs Norwegian crown - SEB

I wonder if our Canuk dolla is gonna be close to US$0.90 soon!

[mirror]

Wow, our loonie is in demand. US$0.8360

Go Canada Go!

Canadian Dollar Surges to Highest This Year on Energy Prices

Canada's dollar rose for a fourth straight day, reaching its highest this year against the U.S. dollar, as prices for crude oil and natural gas surged.

The Canadian dollar pared earlier gains and is up for a fourth straight day and has risen against all 16 major currencies tracked by Bloomberg over the past three months on speculation higher energy prices will spur the economy. Energy and other commodities account for about 10 percent of Canada's C$1.1 trillion gross domestic product.

``The Canadian dollar is a currency investors like,'' said Reid Farrill, director of foreign exchange at CIBC World Markets in Toronto. The currency is ``getting good support from the energy sector and the mergers and acquisition front is seen as favourable.''

Canada's dollar rose to 83.60 U.S. cents at 12:12 p.m. in Toronto, from 83.52 U.S. cents late yesterday. It reached 83.84 U.S. cents, matching the highest since December and up from the low this year of 78.52 U.S. cents in May. One U.S. dollar buys C$1.1957.

A rise in the currency to above 83.68 U.S. cents sets the stage for a move to the Nov. 26 high of 85.33 U.S. cents, Farrill said.

Crude oil for October delivery traded at $66.20 a barrel on the New York Mercantile Exchange, up 49 cents. Oil prices have more than doubled from the end of 2003. Natural gas reached $10 for the first time in 30 months in New York.

[mirror]

Jeez, now our dolla is at US$0.84. What the......

This is incredible. How high did it get in the past few years? I think it is reaching close to where its been the highest in the past is it 30 years?

[mirror]

If my calculator works our dolla is trading today at US$0.8404, less than 16 cents away from par with da yankee dolla! I have just been following the currency chart for past few minutes, my goodness the yankee dolla is sinking like a stone at least against our loonie. At the moment the price of a yankee dolla is even less than I have posted above. It jumps around though.

Forex: The Loonie Reaches 9-month Highs on Record Oil Prices

It was a good day to be a Canadian dollar bull, as the loonie rallied to a 9-month high of C$1.1893 at 17:55 GMT today.  The rally brought the USDCAD currency pair over 100 pips off of its daily high amid surging crude oil and natural gas prices, as no economic data out of Canada was scheduled for release.

With little market-moving information out of Canada today, the nation’s currency was forced to trade on speculation higher energy prices will spur the economy, as energy and other commodities account for about 10 percent of Canada’s GDP.  Crude oil, which has gained over 60 percent on the year, currently trades at all-time highs of $67.35 per barrel on the New York Mercantile Exchange.  Natural gas also rallied, reaching three-year highs of $10 per contract in New York trading.

Looking forward, recent gains in energy prices and strong retail sales lead experts to believe that Friday’s CPI data will show heightened inflationary pressure for the world’s seventh-largest economy. The headline yearly rate is predicted to creep above 2 percent, feeding speculation that the Bank of Canada will have no choice but to raise central interest rates at upcoming meetings.  

Canadian equities were mixed despite stronger than expected earnings from Canadian Imperial Bank of Commerce, Canada's fourth-largest lender. Consequently, Toronto’s S&P TSX composite index gained 59.31 points to 10,539.34 while the TSX Venture slipped 9.74 to 1,912.52.

[mirror]

I don't know how many of you have been following the hurricane Katrina forecast for the New Orleans area but their mayor has now ordered all citizens to evacuate the city.

As well 25% of the US's oil supply is produced in that area which means that the price of oil might be skyrocketing shortly. We think prices are high now but perhaps we have not seen anything yet.

This is certain to have some kind of impact on Canada's dolla.

Hold onto your hat folks.

[mirror]

Canadian dolla = US$0.8430

[Toro]

The loonie is within a cent of hitting a 13 year high.

75% chance of it hitting 90 cents. 50/50 it hits par.

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Canadian dolla = US$0.8464

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US$0.8470

We are rapidly approaching 85 cents US. It's rising like a phoenix our Canuk dolla these days.

[Montgomery Burns]

Personally, I like a high Canadian dollar since my 3 biggest suppliers are American companies.

However I am not sure that a high Canadian dollar is that great for the country as a whole. Since Canada exports more than it imports, it seems that a lower CDN dollar would make your products lower-priced on the world market. Additionally, there is the tourism factor. A low CDN dollar forces Canadians to think twice about touring the US, and makes them think about maybe touring more of this vast country. It works the opposite for Americans. A low CDN dollar gives a higher exchange rate for them and encourages them to maybe visit Canada instead of spending their money exploring their own vast country.

And a high CDN dollar encourages Canadians close to the US border to slip across and buy some of those cheap goods in capitalist America. The low CDN dollar put a stop to that habit.

I get the feeling that Mirror thinks this is some kind of contest as to who has the highest rated currency. I remember the Europeans endlessly boasting how their euro was worth more than the US dollar. They've stopped doing that now because their own economists are complaining that the high euro is hurting their economy; tourism and exports, etc.

And I noticed that Finfacts latest Cost of Living Analysis of the 144 worldwide cities that they rate each year, has shown all the European cities rising in cost of living versus the US cities dropping in cost of living compared to last year. They said that was because of the euro appreciating and the US dollar depreciating.

It's a mixed bag, but I believe, on the whole, a lower dollar is better for Canada.

[mirror]

The strength of Canada's economy has sure taken the wind out of the sails of the Conservatives. With the Canadian economy doing so well all the Tories have been doing is firing blanks for years and years now. Today our canuk dolla is trading above US$0.85 the highest it has been in 13 years.

North American stock markets moved sharply higher Friday afternoon while the Canadian dollar traded at a 13-year high - shooting above 85 cents US after a recent interest rate hike and a stable jobs report from Statistics Canada.

Bay Street investors cheered a fresh spate of corporate and economic news, propelling triple-digit increases on Canada's benchmark index, which surpassed the Dow Jones industrial average by more than 200 points.

On Wall Street, revised forecasts from Texas Instruments Inc. and Intel Corp. overshadowed high crude oil prices, which neared $65 US a barrel after the U.S. Department of Energy suggested winter energy costs could hit a 10-year high.

[apollo19]

The strength of Canada's economy has sure taken the wind out of the sails of the Conservatives. With the Canadian economy doing so well all the Tories have been doing is firing blanks for years and years now. Today our canuk dolla is trading above US$0.85 the highest it has been in 13 years.

If the dollar keeps going higher, it could risk the large manufacturing in Ontario, which is already in poor financial shape -- which in turn would weaken the economy.

Which would give the Tories a loaded gun to fire

[Toro]

The strength of Canada's economy has sure taken the wind out of the sails of the Conservatives. With the Canadian economy doing so well all the Tories have been doing is firing blanks for years and years now. Today our canuk dolla is trading above US$0.85 the highest it has been in 13 years.

If the dollar keeps going higher, it could risk the large manufacturing in Ontario, which is already in poor financial shape -- which in turn would weaken the economy.

Which would give the Tories a loaded gun to fire

This is an interesting point.

The strengthening dollar is at least in part due to Martin and the balanced budget. However, its also because of external demand for Canadian raw materials, which has nothing to do with the Liberals. So, in Ontario, where Martin is most likely to benefit from his credentials as good for the economy, the strengthening dollar hurts manufacturing. Out west, it will not help as much since the strengthening loonie is seen as due to demand for oil.

[August1991]

The strengthening dollar is at least in part due to Martin and the balanced budget.

I think it is fair to say that the Canadian dollar is not really rising; it is the US dollar that is falling.

[mirror]

The strengthening dollar is at least in part due to Martin and the balanced budget.

I think it is fair to say that the Canadian dollar is not really rising; it is the US dollar that is falling.

<{POST_SNAPBACK}>

What's the difference?

The Canadian loonie has appreciated in relation to the benchmark up to now at least, the US greenback, but perhaps not for too much longer. By far the most foreign trade we do is with the US. So it give us much better purchasing power abroad. And yes we have to be competitive and productive at home but why shouldn't we as we have so many commodities right here in Canada.

[Toro]

The strengthening dollar is at least in part due to Martin and the balanced budget.

I think it is fair to say that the Canadian dollar is not really rising; it is the US dollar that is falling.

Its both. The loonie has also outperformed the Euro.

[mirror]

Of course it's both.

[Toro]

Of course it's both. 

No, there is a difference. Canada's currency could be improving while the US is also improving, but its not. Canada is improving relative to itself while at best, the US is stable, or, more likely, deteriorating.

[Canuck E Stan]

The Loonie is taking flight again.

Highest level in 13 years.

This is going to be affecting Ontario manufacturing jobs big time if it keeps climbing,but on the bright side, that winter vacation in Sunny California could be more affordable.

Loonie leaps

[Argus]

The Loonie is taking flight again.

Highest level in 13 years.

This is going to be  affecting Ontario manufacturing jobs big time if it keeps climbing,

Loonie leaps

<{POST_SNAPBACK}>

Let me tell you what it has meant to me personally. I regularly get a check for work I do for international customers - in US dollars. This works out to approximately $2,000 per month US. This month that $2,000 is worth about $2350 Canadian. Three years ago that same $2,000 would have fetched $3150. Thus the plummeting US buck is costing me, personally, about $800 a month.

One of the many reasons I can't stand George F'ing Bush.

Most of our exports go to the US. The rising dollar makes them more expensive in comparison to American produced products. You can be damned sure this is already massively affecting the sale of manufactured goods (which is what supplies the jobs). It's disguised somewhat because we sell them so much oil and natural gas, but the higher the Cdn dollar rises the more damage it's going to do to Canadian manufacturers.

[Canuck E Stan]

Canadian plants in peril of losing cost advantage: GM VP

The currency - currently worth close to 86 cents US, up from under 80 cents a year ago, 75 cents two years ago and 63 cents three years ago - "has eroded considerably the labour cost advantage that we as Canadians and as a Canadian manufacturer had, vis-a-vis the U.S. especially," Mr. Green observed.

The pinch point for the Canadian dollar in GM's decision-making "depends on a number of other factors, but in round numbers probably in the 88- to 92-cent range."

And he warned that the cost gap between Canadian and American workers "will move significantly in favour of UAW workers."

For CAW members, he said: "This does not bode well for their long-term survival."

At 86 cents US the loonie is already making Canadian manufacturing less attactive to the American companies,even though quality is superior in Canada.It will only get worse

the higher the loonie climbs.

It will be interesting to see if Ontario voters will put blame for the high loonie/job loses on the government (Federal or Provincial), and if so if it will reflect in their next vote.

[Riverwind]

It will be interesting to see if Ontario voters will put blame for the high loonie/job loses on the government (Federal or Provincial), and if so if it will reflect in their next vote.

How exactly would this feeling translate into a vote for a specific party? Maybe they will vote for the "lets bankrupt the country and send the dollar down" NDP?