Mystery Buyer of Cdn. pushes up the Loonie! ;)

CBC News


The Canadian dollar rose sharply Thursday, amid rumours of a mystery buyer active in the currency markets.

The loonie closed up 1.28 cents to 99.61 cents US, gaining 2.2 cents in two days.

The Canadian dollar closed at 99.61 cents US Thursday, up 1.28 cents. (Paul Chiasson/Canadian Press)
Traders regard the loonie as a commodity-based currency, much like the Australian and New Zealand dollars, but the Canadian dollar's sharp rise outpaced those currencies and commodities themselves.

That's prompted a rumour that there's a large buyer of Canadian dollars in the market, Camilla Sutton, chief currency strategist at Scotia Capital, told CBC News.

But Sutton said if there is such a buyer, there's no way to know who it is.

"Your speculation is as good as mine," she said. "It's very hard to quantify and it may be something that nobody ever finds out about."

"The foreign exchange market is huge and so it would take a significant flow, it's not just somebody buying a million dollars because they're looking at buying a property or something, it would have to be something far larger than that."



Read more: http://www.cbc.ca/money/story/2010/12/02/dollar-gains.html#ixzz173JCaSyT

Loonie up almost a penny and a half US

Yesterday, the North American stocks markets rallied, as a report showed small businesses in the U.S. were hiring more workers and the European Central Bank indicated it will do whatever is necessary to support the financial stability of member countries.

In Toronto, the S&P/TSX composite index finished the day up 195.5 points, or 1.5 per cent, to 13,148.3.


The Canadian dollar closed up 0.92 cents to 98.33 cents US as other global currencies also made strides against the U.S. dollar.

Today the Loonie continues to rise to 98.95 as of this morning. This is due to the high earnings report from the major banks here in Canada. It isn't a wonder that the Banks are doing so well as we as investors get nothing back in return, they get to use our money and we get no interest or very little. I make more in a month picking up Pop Bottles for one afternoon a month along the HWY than we get from our various bank accounts.

Here is a little twist. I get to borrow money interest free from a Major Credit Card for a year. Now should we default the 30% interest would be lethal.

So one of our Credit Card Companies is offering us a chance to borrow up to 32,000 which is my limit; interest free for a year. I plan to borrow 10,000 put it in the PC and add it to our Tax Free interest Savings Account as we will get an extra 2.50% for the first 6 months of this year on all new deposits over and above the 1% now. Weird or what. Save me having to pick up empty bottles on the road side!

This way get to Max out our TFSA for another year for the two of us, and if anything goes really sour can cash it in and pay off the loan immediately instead of 8 months down the road.

Only in Canada . Eh

High Loonie Good & Bad

Canada posted a record current account deficit in the third quarter, bringing into sharper focus the detriment — and the benefit — of an inflated loonie to the country’s trade performance.

The shortfall in the broadest measure of trade rose to $17.5-billion, a new low-water mark on an absolute basis. A record deficit in the goods merchandise trade balance of $6.5-billion was the driving factor, pushing the Canadian economy deeper into net debtor status.

“The loonie’s wingprints were all over this morning’s current account data for Canada,” Krishen Rangasamy, an economist at CIBC World Markets said in a note. “But exports also didn’t perform despite the recovery underway, clearly hampered by a loonie that has, over the years, aided the erosion of our market share in the U.S.”

But as an indicator of overall economic prospects, the current account balance is a double-edged sword. While every country aims to be a net seller to the rest of the world, Canadian companies appear to be taking the opportunity to invest in machinery and equipment imports.

The value of imported goods rose for the fifth straight quarter, up $3.6-billion, an increase mostly due to rising investment in machinery and equipment.

Until the Sun Shines Out of Your Ass

GEICO-Piggy

Lullaby, Sweet Lullaby

September 6th is Procrastinator's Day "Ironic" as it is Labour Day

In Honor of Procrastinators Day, I am updating my Blog. Tomorrow.

The Procrastinator's Creed.

I believe that if anything is worth doing, it would have been done already.
I shall never move quickly, except to avoid more work or find excuses.
I shall meet all of my deadlines directly in proportion to the amount of bodily injury I could expect from missing them.
If at first I do not succeed, there is always next year.

I shall always decide not to decide, unless of course I decide to change my mind.
I obey the law of inverse excuses which demands that the greater the task to be done,
the more insignificant the work that must be done prior to beginning the greater task.
I know that the work cycle is not plan/start/finish, but is wait/plan/plan.

I will never put off tomorrow, what I can forget about forever.
I firmly believe that tomorrow holds the possibility for new technologies,astounding discoveries, and a reprieve
from all my obligations of today.

So be bold ,be proud. Be late for something today or do not do something today. What ever turns or not turns your fancy. But, whatever you do, do not be late for dinner.

Dollar Parity-

It's been quite a year for the Canadian dollar. Another run at parity with the U.S. dollar looked unlikely just 12 months ago.
Yet, now it is even better just slightly, when the fuel stock report comes out and should the US have a surplus the dollar will fall below par again. Until the central bank puts up the Bank Rate and then . I expect to see at least $1.02-$1.05 for a short time and then level off to around par for another 6 or 8 months.

Yet, on April 6, 2010, the dollar touched parity early in the trading day and spent much of the day just under the even mark. That's good news if you're planning a trip south of the border, thinking of buying a vacation property in the sunbelt, buying shares in American companies or running a professional sports franchise and paying your players in American dollars.

It's not so good if you depend on American tourists to make your living, export to the United States or work in the film business in Canada.

'The strong dollar will keep a lid on imported goods prices, and could lead to some price cutting'
—Douglas Porter

You might be tempted to engage in some cross-border shopping, but you likely won't find much difference in your costs if you've shopped south of the border over the past six months. The Canadian dollar has hovered at around 95 cents US for the past two quarters, so this latest shot at parity has not been as much of a boost to purchasing power as it was the last time around.

"The strong dollar will keep a lid on imported goods prices, and could lead to some price cutting on selected goods," Douglas Porter, deputy chief economist at BMO Capital Markets, said. "More broadly, it will help restrain inflation, and could slow the rise in interest rates later this year. The further the Canadian dollar rises, the less the Bank of Canada will feel the need to boost its key lending rate."

Dollar parity: What does a high Canadian dollar mean to you?

Porter noted the news is not all bad for manufacturers. He suggests that a sustained period of parity coupled with the elimination of import tariffs on industrial machinery in the last federal budget, will make it cheaper for businesses to invest in their operations.

On April 6, 2009, the Canadian dollar was hovering at just under 80.5 cents US. It would have cost you a little more than $1.24 to buy one American dollar. Despite a weak economy, the U.S. dollar was enjoying renewed strength - a far cry from its position less than 18 months earlier when the Canadian dollar set a modern-day record, surpassing $1.10 US.

That day was Nov. 7, 2007. It took a record $1.4703 US to buy one Euro. It took only $1.3448 CDN to buy one Euro. British pounds were going for $2.1051 US and $1.9296 CDN.

With the dollar back around parity with the U.S. dollar, the pound has tumbled by around 20 per cent to $1.53 CDN. The Euro remains at around $1.35 CDN. A trip to the UK this year may be more affordable than it was two years ago, although continental Europe may not be as much of a bargain.

Buy American?

If you do shop or travel frequently in the United States, you might want to consider applying for a U.S. dollar credit card that you've tied to a U.S. dollar bank account. You will save the approximately 2.5 per cent that banks charge for foreign currency transactions when you use your Canadian credit card south of the border.

And with parity again the picture, it could be time to diversify your investment portfolio by buying shares in American companies.

If you buy shares in American companies now and the price remains flat, you'd still come out ahead — but only if the Canadian dollar slips off its lofty perch by the time you got around to selling those shares.

However, economists are suggesting that this dose of parity could last substantially longer than the last one.

Today, April 14, 2010; it is now trading at approx. $1.0039. Still waiting for it to go over the $1.02 Cdn.



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