Dollar headed for par again?

Doug_yvr · #1 (**permalink**) 05-20-2009, 05:11 PM

Investors are recommending the Canadian dollar and Euro over the USD. Good news for those of us who travel, bad news for our manufacturing sector.

Quote:

Citigroup Says Buy Euro, Canadian Dollar

May 20 (Bloomberg) -- Investors should buy the euro and Canadian dollar versus the greenback as the currencies head for closes today that signal “structural breaks,” Citigroup Inc. said in a report citing technical patterns.

The euro may rise to its December 2008 high of $1.4720 provided it closes higher than $1.3739 today, above the range of a so-called “double top” pattern, Citigroup analysts Tom Fitzpatrick in New York and Shyam Devani in London wrote today in a note to clients. Against its Canadian counterpart, the dollar is likely to fall to at least C$1.093 if it closes below C$1.1465, the analysts said.

[url=http://www.bloomberg.com/apps/news?pid=20601082&sid=a6qDqEpn5WmI&refer=canada[/url]

Obviously Citigroup isn't predicting par, but you know how investors overreact on these things.

legojenn · #2 (**permalink**) 05-21-2009, 04:46 AM

If oil prices go high again (taking the dollar with it), even a conservative government could pull a surplus in one of its budgets. I've noticed an increase in the dollar in the past few weeks and even took a trip to the US over the holiday weekend.

White Rabbit · #3 (**permalink**) 05-21-2009, 06:28 AM

Fluctuations in the Canadian dollar have followed the world commodities price index pretty closely for the last half century.

Oil is projected to rise in price - thus so will the Canadian dollar.

waltky · #4 (**permalink**) 05-21-2009, 03:20 PM

Dollar losing value...

The incredible shrinking dollar
May 21, 2009: The greenback has weakened as stocks have rallied on economic recovery hopes. But there are pros and cons to the dollar's decline.

Quote:

The U.S. dollar has taken a beating in the past few months even as stocks have soared and investors have come to expect an economic recovery sooner rather than later. The euro hit a 5-month high against the greenback on Wednesday while the British pound rallied to its highest level against the dollar since November. The dollar has also been weakening against the yen as of late. It's an interesting phenomenon that, at first blush, might not make sense. The stronger the rally in stocks and the more that people talk about a potential end to the recession, the more ground the dollar...loses against other currencies?

But this does make sense. Despite the many problems facing the U.S. economy, traders had flocked to the dollar because of its relative safety. As bad as the U.S. economy was, it appeared that Europe's was in even worse shape. Plus, there's the notion that since the U.S. led the rest of the world into this global economic crisis, it was likely that it would also be the first country to emerge from the recession.

Now that there are more signs that this is coming to fruition, investors have embraced stocks again. The dollar is no longer viewed as a place for jittery investors to park cash. "The dollar is under pressure. As the economic situation in the U.S. seems to be stabilizing, the dollar is losing some of its safe haven demand. It's on weak footing," said Brian Dolan, chief currency strategist for FOREX.com, online currency trading site.

More http://money.cnn.com/2009/05/21/mark...buzz/index.htm

White Doors · #5 (**permalink**) 05-22-2009, 09:43 AM

Quote:

Originally Posted by legojenn

If oil prices go high again (taking the dollar with it), even a conservative government could pull a surplus in one of its budgets. I've noticed an increase in the dollar in the past few weeks and even took a trip to the US over the holiday weekend.

Even a conservative government?
Not sure what that is supposed to mean?

The Liberals, Bloc & NDP all wanted the 'stimulus' package to be larger than it was....

White Doors · #6 (**permalink**) 05-22-2009, 09:44 AM

Quote:

Originally Posted by White Rabbit

Fluctuations in the Canadian dollar have followed the world commodities price index pretty closely for the last half century.

Oil is projected to rise in price - thus so will the Canadian dollar.

I hope our dollar goes up.
it is crazy how much more we pay for things up here compared to the US. A higher dollar will increase our buying power.

CB4 · #7 (**permalink**) 05-22-2009, 10:13 AM

Quote:

Originally Posted by White Doors

I hope our dollar goes up.
it is crazy how much more we pay for things up here compared to the US. A higher dollar will increase our buying power.

I agree 100 %, exactly what I was going to say.

White Doors · #8 (**permalink**) 05-22-2009, 10:19 AM

Quote:

Originally Posted by CB4

I agree 100 %, exactly what I was going to say.

Great minds!

White Rabbit · #9 (**permalink**) 05-23-2009, 04:30 AM

Quote:

Originally Posted by White Doors

Even a conservative government?
Not sure what that is supposed to mean?

The two greatest deteriorations in Canadian fiscal position were caused by the policy of Brian Mulroney and now Stephen Harper. Canadian conservatives have proven themselves to be fiscally irresponsible.

The greatest (relative or absolute) improvement in Canadian fiscal position was caused by the policy of Paul Martin (as Finance Minister).

The USA shows a similar recent pattern of irresponsible spendthrifts from the Republicans (Reagan, Bush and Bush) and some fiscal responsibility from the Democrats (Clinton).

Its pretty obvious that if one supports fiscal responsibility, one ought to avoid voting for American Republicans or Canadian Conservatives. The track record speaks for itself.

waltky · #10 (**permalink**) 05-23-2009, 03:54 PM

U.S. may about to get lower credit rating...

U.S. dollar plunges on credit rating fears
Friday 22nd May, 2009 - The U.S. dollar’s losses of past weeks accelerated Friday amid fears the U.S. may lose its cherished AAA credit rating.

Quote:

Spooking investors, which include many central banks around the world, is the amount of debt the U.S. treasury is raising to fund its various stimulus and industry-support packages. The concern is rising as the bond markets are finding it difficult to place the trillions of dollars in new bond issues.

The White House however is unconcerned, and believes the country’s triple-A rating will not be altered. Asked on Friday if the President was concerned that his policies may be leading towards a downgrade in U.S. credit ratings, and if he was considering anything to allay those fears, White House Press Secretary Robert Gibbs responded: “ No, we're not concerned about a change in our credit rating. What the President is focused on and has been since coming into office was getting in place a recovery plan that will create jobs and get this economy moving again. Short term, the way to bring down the deficit is get this economy moving again. Medium to long term, we have to get our fiscal house back in order, and that's why the President was pleased that Congress passed a budget that cuts the deficit in half in four years.”

At the close of trading on foreign exchange markets in New York on Friday the dollar had fallen to 1.4002 versus the euro. The British pound rose to 1.5908. The Swiss franc rallied to 1.0844. The Australian dollar was well bid at .7836. The Canadian dollar too was sharply stronger at 1.1196. The Japanese yen was unchanged Friday, but much stronger over the week at 94.78.

http://feeds.bignewsnetwork.com/?sid=504625

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