Canadian Dollar keeps going up

[tboy]

The autopact was made REDUNDANT by the US-Canadian Free Trade agreement.

Not really, autopact insures that vehicles can be made on both sides of the border and be sold both sides of the border without importation taxes, fees, duties, or licencing issues. I know when we went metric it threw a curve ball into the mix because now not vehicles made in the US couldn't just be shipped anywhere. They had to make vehicles specific to Canada

NAFTA was basically a way to insure that items manufactured on both sides could be imported/exported duty free. This only eliminated the duty aspect of vehicle importation, not all the other fees.

Even tho NAFTA is in place, the US still has restrictions on importing items such as textiles. They have a limit set on how much textiles or textile products can be brought into the US and if that limit reached early in the year, anyone who wants to bring something in is screwed.

 

[Papi Chulo]

Not really, autopact insures that vehicles can be made on both sides of the border and be sold both sides of the border without importation taxes, fees, duties, or licencing issues. I know when we went metric it threw a curve ball into the mix because now not vehicles made in the US couldn't just be shipped anywhere. They had to make vehicles specific to Canada

NAFTA was basically a way to insure that items manufactured on both sides could be imported/exported duty free. This only eliminated the duty aspect of vehicle importation, not all the other fees./QUOTE]

There was an article on the news (either CBC or Globe & mail online) that many people are shopping for new vehicles south of the border because they are much less. I think a couple bought a Toyota 4runner and they figure after the fees to bring it back, they saved about $10000

 

[tboy]

Papi: There's been a number of threads on that very topic and up until now, it wasn't really financially viable to do because of the exchange rate.

Now with our beaver buck almost at par with the greenback I can see more and more people doing it.

When I was looking for a new(er) truck last summer I did the math and at the time, I would only save about 2 K. Now with the exchange rate being what it is, I'd save about 7K.

One thing to watch out for tho is IF you need any warranty work, you have to go to a US dealership to get it done. I think it was pointed out in one of the other threads that dealerships are told not to warranty out of country vehicles that are licenced in the home country (ie: US vehicle licenced in Canada).

 

[Meister]

This means when the USD goes back up we won't have the infastructure to support the production load when it comes back, if it comes back.

I don't think it will come back for a long time. As long as resource prices are high and the American economy relies on a cheap US dollar to create jobs the CDN dollar will keep rising.

 

[slowpoke]

For a very long time Canadians were told the price of goods in Canada was higher due to the low Canadian dollar, hence we paid more for TV's.. you name it.

The dollar has been "soaring" for nearly a year and there is no signifigant drop in pricing. Not unless it's oil which changes the moment it's pumped out of the ground. Even that doesn't seem to reflect a downward price.

For me a high dollar is bad...very bad. Most of my clients are US and it sure was nice getting a near 50% bonus a few years back!

There was recent news in the Globe and Mail and on 680 News (radio) in Toronto about an increasing number of Canadians going to the US to buy new cars. The auto mfrs haven't dropped the prices in this country as our dollar has soared in value. Maybe those same mfrs are paying more to Canadian parts suppliers but that would drive up the US prices as well. This hasn't happened. A guy I work with just arranged to buy a Toyota Prius in Wisconsin for about $8000 less than here in Canada. His cost to save that much money is about $320 for airfare.

 

[goodtime]

LOL! You're right. ALLLOOOOOOOOOOHAAAAAAAAA!!!

Main reason why so many Japanese tourist in Hawaii. For them, it was cheaper than holiday @ home.

2sexy, repeat slowly the Aaaaaaaa part of aloha.

 

[jjkrszd]

I don't think it will come back for a long time. As long as resource prices are high and the American economy relies on a cheap US dollar to create jobs the CDN dollar will keep rising.

Our dollar certainly won't drop with the Bank of Canada raising interest rates. We're already an attractive place to invest. Higher rates means more people seeking C$...means dollar stays high. I don't understand the fed's approach, unless someone in that grand palace in Ottawa actually wants a par dollar (or better).

To me, it seems like the "West" finally got what they've wanted for a very long time: a federal government that's focused on...the West.

 

[Meister]

To me, it seems like the "West" finally got what they've wanted for a very long time: a federal government that's focused on...the West.

Now,that you mention it, it makes sense with Harper being a Westerner.

 

[Papi Chulo]

Now,that you mention it, it makes sense with Harper being a Westerner.

The west is best

Hopefully he can reform parliament soon... as the west (Man, Sask, Alta & BC) should have more seats than Quebec because the 4 provinces together, have a higher population that Quebec.

 

[thompo69]

The west is best

Hopefully he can reform parliament soon... as the west (Man, Sask, Alta & BC) should have more seats than Quebec because the 4 provinces together, have a higher population that Quebec.

Ummm...those provinces DO have more seats than Quebec. Quebec has 75 and those four combined have 92.

 

[Dash]

Does this mean I should sell my stocks now?

 

[FOOTSNIFFER]

I dunno, but I think you should consider buying US assets soon. Maybe not right now, 'cause the CN$'s momentum, but soon. The US has better, less cyclical companies with broad international exposures. The time to back up the truck is soon arriving.

 

[Meister]

I dunno, but I think you should consider buying US assets soon. Maybe not right now, 'cause the CN$'s momentum, but soon. The US has better, less cyclical companies with broad international exposures. The time to back up the truck is soon arriving.

Which American companies do you suggest? I would guess it's the export oriented companies such as Boeing that should do really well and are helped by the low dollar.

 

[Gyaos]

The CAD will drop huge come late 2008. The Dems will be fully in charge of the USA and protectionism will start.

Does this mean I should sell my stocks now?

Look at the charts of the stock market and look at the inverse of the fall in the US Dollar. They are the same/identical. This should give you a real good indicator on when to cash out, before the massive global crash.

Gyaos Baltar.

 

[WhaWhaWha]

13/07/07
Can/US closing 1.0485
Can/US noon 1.0477
US/Can noon 0.9545

16/07/07
Can/US noon 1.0430
US/Can noon 0.9588

Practically on par. Takes the thrill out of getting yankee quarters from the vending machine.

 

[bigaudio]

Go Loonie Go

Loonie hits 30-year high
Canadian currency briefly passes 96-cent (U.S.) mark, and analysts see more upside

 

[Papi Chulo]

Loonie hits 30-year high
Canadian currency briefly passes 96-cent (U.S.) mark, and analysts see more upside

A high versus the US dollar.. however its value compared to most other currencies has not changed in the last year.

 

[bigaudio]

It's quite an accomplishment for Canadians to come back from the 60s, many bought $US betting it would fall further. I'm sure there will be some partying around town in trading rooms if it hits par.

 

[goodtime]

Or on Terb

 

[WhaWhaWha]

Anyone remember the mid 70s when the US dollar was worth .90 Canadian? We were such snobs about it then.