Canadas dollar sinking

miller8966

Canada's Dollar Touches Nine-Month Low as Crude Oil Declines

By Haris Anwar

Jan. 3 (Bloomberg) -- Canada's dollar touched a nine-month low as crude oil prices tumbled and traders predicted the currency's decline will extend into the new year.

The currency tends to follow the price of commodities, which account for about 54 percent of Canada's exports. Crude oil, which peaked in July, declined today as mild weather in most of the U.S. reduced heating-fuel consumption.

``The commodity price picture is unlikely to be supportive for the currency going forward,'' said Marc Levesque, chief North American strategist at TD Securities Canada Inc. in Toronto.

The Canadian currency dropped 0.4 percent to 85.46 U.S. cents at 11:39 a.m. in Toronto from 85.80 U.S. cents yesterday. One U.S. dollar buys C$1.17. The Canadian currency touched 85.39 U.S. cents, the lowest since April 4.

The Canadian dollar last year saw its first annual decline in five years as the economy slowed and crude oil ended a four- year rally. The currency has dropped 6.6 percent from 91.44 U.S. cents on May 31, which was the highest since 1978.

Crude oil for February delivery fell $1.95, or 3.2 percent, to $59.10 a barrel on the New York Mercantile Exchange. Futures touched $58.92, the lowest since Nov. 24. Oil is down 6.2 percent from a year ago.

The net short positions in the Canadian currency reached a record high of 66,000 last week, according to data compiled by the Washington-based Commodity Futures Trading Commission. Some traders speculate a slowdown in the U.S., which receives 80 percent of Canada's exports, will hurt the Canadian currency.

The Canadian dollar was one of 15 major currencies to fall against the U.S. dollar, which got a boost from a private report that showed U.S. manufacturing unexpectedly expanded in December. Canada ships 80 percent of its exports to the U.S.

U.S. Manufacturing Boost

The Institute for Supply Management's U.S. manufacturing index for December rose to 51.4 from 49.5 in November. A reading above 50 signals an expansion. The median forecast in a Bloomberg survey of 63 economists was for a reading of 50.

Sales of previously owned U.S. homes unexpectedly rose 0.6 percent in November after increasing 0.5 percent the previous month, the National Association of Realtors reported Dec. 28.

Canada's economy, the world's eighth-largest, failed to grow in back-to-back months in October and September for the first time since March and April of 2003. The gross domestic product was unchanged in October after contracting 0.4 percent the previous month, Statistics Canada reported Dec. 21.

``Following a string of soft Canadian economic numbers and some signs the U.S. housing market could be stabilizing, speculation that the Bank of Canada might be more aggressive than the Federal Reserve in any rate-cutting campaign appears to be growing,'' said Camilla Sutton, a currency strategist at Scotia Capital Inc. in Toronto.

Outlook on Rates

The Canadian central bank will cut its benchmark lending rate to 4 percent by the end of 2007, according to the median estimate of 12 economists surveyed by Bloomberg News on Dec. 28. The Bank of Canada raised its benchmark rate to 4.25 percent in May, and has kept it steady since.

The Federal Reserve has kept its target overnight lending rate between banks unchanged at 5.25 percent at their past four meetings, following 17 consecutive rate increases.

``Markets are punishing currencies which have central banks firmly in the dovish camp, and certainly the Canadian dollar falls into that camp,'' said David Mozina, a senior currency strategist at Lehman Brothers Holdings Inc. in New York.

The yield on Canada's benchmark 10-year note was little changed at 4.06 percent. The price of the 4 percent security maturing in June 2016 was C$99.54. Prices rise as yields decline.

sapperskunk

LMFAO!

Gosh I wonder why you wanted to post this man?

surferdude

Just makes it easier to export our crap to the US. And makes it harder for the US to import their crap into Canada.

miller8966

surferdude wrote:

Just makes it easier to export our crap to the US. And makes it harder for the US to import their crap into Canada.

We own you..

exhausted

oh for fuck's sake.

CorporateWhore

We've already got a wicked trade deficit with the Canucks. That should get worse.

Gotta love Pam Anderson though.

Skitch Patterson

thats why money should be made of paper, not coins.

RockinInCanada

miller8966 wrote:

We own you..

Nope.......

exhausted

miller8966 wrote:

We own you..

what sort of deap-seated insecurity do you have that causes you to spew this sort of dough-headed bullshit constantly?

this isn't fucking nascar.

do you have a point?

miller8966

exhausted wrote:

what sort of deap-seated insecurity do you have that causes you to spew this sort of dough-headed bullshit constantly?

this isn't fucking nascar.

do you have a point?

Nascar?

So just because im republican and love my country means that i watch shitty nascar?

small town beck

miller8966 wrote:

We own you..

LOL

And they say it is we Canucks that are insecure :rolleyes: Get over it already!!

Canada. It IS better on top!!!

small town beck

miller8966 wrote:

Nascar?

So just because im republican and love my country means that i watch shitty nascar?

I am just curious. Does loving your country mean that you have to hate other countries? I don't get that. I love my country but I don't hate other countries. eh, maybe it is just something in the water Sure I mean maybe I don't like China's human rights policies ( or well lack thereof) and that sort of thing but it doesn't make be go around saying China sucks just so I can in small way feel that Canada is better.

Whatever floats your boat

miller8966

small town beck wrote:

LOL

And they say it is we Canucks that are insecure :rolleyes: Get over it already!!

Canada. It IS better on top!!!

Its a funny thing with you bacon eaters.

You can criticize us all day, but god forbid we say anything about you

small town beck

miller8966 wrote:

Its a funny thing with you bacon eaters.

You can criticize us all day, but god forbid we say anything about you

I don't remember criticizing you??

exhausted

miller8966 wrote:

Nascar?

So just because im republican and love my country means that i watch shitty nascar?

still no point, huh?

I don't give a shit if you are a republican. There are plenty of well spoken republicans. I'd be embarrassed to be in your company if I were GOP. I take issue with the garbage you spew.

"we own you"

what does that even mean? you have no point beyond useless rhetoric.

you're so over the top that I almost think you're a shits & giggles alter ego of someone more left of centre. You can't be this much of a meathead naturally.

Pickr

miller8966 wrote:

Its a funny thing with you bacon eaters.

You can criticize us all day, but god forbid we say anything about you

I love the bacon.

Songburst

miller8966 wrote:

We own you..

Says the guy from the country with no fresh water or oil reserves. Just keep buying our shit and shut the fuck up.

smarchee

Songburst wrote:

Says the guy from the country with no fresh water or oil reserves. Just keep buying our shit and shut the fuck up.

here here, stick it to those thirsty, SUV driving knuckle-draggers

cut off the oil sands

searchlightsoul

miller8966 wrote:

We own you..

One of my friends from Detroit travels as a 'Canadian' overseas. This is why.

miller8966

searchlightsoul wrote:

One of my friends from Detroit travels as a 'Canadian' overseas. This is why.

Screw that.

"Canadia is the proper spelling for a country where the people call themselves "Canadians". If the country's name was spelled "Canada," then the people there would call themselves "Canadans." Since they call themselves "Canadians", it's only reasonable to spell the name of their country "Canadia." After all, people from Germany don't call themselves "Germanians" do they?

In fact, chances are that you found this web page because you typed "Canadia" into a search engine. Subconsciously you already believe that the country to the north of the United States should be called Canadia. Thank you for seeing things our way.

For those of you who went to public school in the U.S. and haven't heard of Canadia before, it's a small, third-world country just north of the United States. Once you learn to understand their peculiar dialect of English, it's not too hard to converse with Canadian natives.

Canadia is a poor and sparsely-populated country where up to 98% of the citizens are alcoholics. Most Canadian citizens have government jobs where they are paid to say "Eh?" all day long."

mammasan

miller8966 wrote:

Canada's Dollar Touches Nine-Month Low as Crude Oil Declines

By Haris Anwar

Jan. 3 (Bloomberg) -- Canada's dollar touched a nine-month low as crude oil prices tumbled and traders predicted the currency's decline will extend into the new year.

The currency tends to follow the price of commodities, which account for about 54 percent of Canada's exports. Crude oil, which peaked in July, declined today as mild weather in most of the U.S. reduced heating-fuel consumption.

``The commodity price picture is unlikely to be supportive for the currency going forward,'' said Marc Levesque, chief North American strategist at TD Securities Canada Inc. in Toronto.

The Canadian currency dropped 0.4 percent to 85.46 U.S. cents at 11:39 a.m. in Toronto from 85.80 U.S. cents yesterday. One U.S. dollar buys C$1.17. The Canadian currency touched 85.39 U.S. cents, the lowest since April 4.

The Canadian dollar last year saw its first annual decline in five years as the economy slowed and crude oil ended a four- year rally. The currency has dropped 6.6 percent from 91.44 U.S. cents on May 31, which was the highest since 1978.

Crude oil for February delivery fell $1.95, or 3.2 percent, to $59.10 a barrel on the New York Mercantile Exchange. Futures touched $58.92, the lowest since Nov. 24. Oil is down 6.2 percent from a year ago.

The net short positions in the Canadian currency reached a record high of 66,000 last week, according to data compiled by the Washington-based Commodity Futures Trading Commission. Some traders speculate a slowdown in the U.S., which receives 80 percent of Canada's exports, will hurt the Canadian currency.

The Canadian dollar was one of 15 major currencies to fall against the U.S. dollar, which got a boost from a private report that showed U.S. manufacturing unexpectedly expanded in December. Canada ships 80 percent of its exports to the U.S.

U.S. Manufacturing Boost

The Institute for Supply Management's U.S. manufacturing index for December rose to 51.4 from 49.5 in November. A reading above 50 signals an expansion. The median forecast in a Bloomberg survey of 63 economists was for a reading of 50.

Sales of previously owned U.S. homes unexpectedly rose 0.6 percent in November after increasing 0.5 percent the previous month, the National Association of Realtors reported Dec. 28.

Canada's economy, the world's eighth-largest, failed to grow in back-to-back months in October and September for the first time since March and April of 2003. The gross domestic product was unchanged in October after contracting 0.4 percent the previous month, Statistics Canada reported Dec. 21.

``Following a string of soft Canadian economic numbers and some signs the U.S. housing market could be stabilizing, speculation that the Bank of Canada might be more aggressive than the Federal Reserve in any rate-cutting campaign appears to be growing,'' said Camilla Sutton, a currency strategist at Scotia Capital Inc. in Toronto.

Outlook on Rates

The Canadian central bank will cut its benchmark lending rate to 4 percent by the end of 2007, according to the median estimate of 12 economists surveyed by Bloomberg News on Dec. 28. The Bank of Canada raised its benchmark rate to 4.25 percent in May, and has kept it steady since.

The Federal Reserve has kept its target overnight lending rate between banks unchanged at 5.25 percent at their past four meetings, following 17 consecutive rate increases.

``Markets are punishing currencies which have central banks firmly in the dovish camp, and certainly the Canadian dollar falls into that camp,'' said David Mozina, a senior currency strategist at Lehman Brothers Holdings Inc. in New York.

The yield on Canada's benchmark 10-year note was little changed at 4.06 percent. The price of the 4 percent security maturing in June 2016 was C$99.54. Prices rise as yields decline.

Miller no offense but you sound foolish right now. Rambling on about how the Canadian dollar is loosing value when our own dollar has been steadily declining in value over the past several years is well stupid. We now have many central bank converting their assests to the Euro. Oil producing countries are deciding wether to change their Oil index from the US dollar to the Euro. It's pretty ridiculous to sit there and ridicule a country because their currency is loosing value when our own currency has been following the same trend for years.