US exchange rate to CDN

**Namefox** · 03-26-2010, 01:19 PM

For the first time ever, my adsense earning converted to less CDN $ from US. Should have put a hold on it...
On a positive note, it is costing me less to purchase in USD.

**Banned: theinvestor** · 03-26-2010, 01:26 PM

CAN$ is overvalued...start converting

**Namefox** · 03-26-2010, 01:33 PM

I'm going to now...

**whitebark** · 03-26-2010, 01:36 PM

Originally Posted by theinvestor

CAN$ is overvalued...start converting

Look for $1.10 by the summer

**Banned: theinvestor** · 03-26-2010, 01:43 PM

Possibly but it is still overvalued...so i'll stick to USD.

**whitebark** · 03-26-2010, 03:03 PM

Originally Posted by theinvestor

Possibly but it is still overvalued...so i'll stick to USD.

Just how is it overvalued? Canada has one of the lowest rates of debt to GDP ratios, we didn't suffer that bad from the recession and we are sitting on top of abundant natural resources that the world not only wants but desperately needs - and increasingly so as they too come out of recession.

The US is all but bankrupt. If they were a person they would have been foreclosed on long ago. The Canadian dollar is not only rising against the greenback but all major currencies.

Now if we could only get competent financial leadership like that enjoyed during the Martin years we would be even better off!

**DomainsInc** · 03-26-2010, 03:09 PM

Its sucks all around regardless..the banks give you less on the exchange from USD to CAN than the official rate...credit card companies/paypal's exchange rate is always higher than official rate...

**Banned: theinvestor** · 03-26-2010, 03:20 PM

Originally Posted by whitebark

Just how is it overvalued? Canada has one of the lowest rates of debt to GDP ratios, we didn't suffer that bad from the recession and we are sitting on top of abundant natural resources that the world not only wants but desperately needs - and increasingly so as they too come out of recession.

The US is all but bankrupt. If they were a person they would have been foreclosed on long ago. The Canadian dollar is not only rising against the greenback but all major currencies.

Now if we could only get competent financial leadership like that enjoyed during the Martin years we would be even better off!

That's great and all but i am referring to it being overvalued based on a long term position. Take a look at the history of the loonie.

The driving forces right now in the canadian dollar is purely speculation and for that reason i believe it is overvalued and due for a correction.

Whether short term it goes to 1.10 in my opinion is irrelevant. Long term, i would be buying USD as the recovery is inevitable.

**msn** · 03-26-2010, 04:49 PM

Originally Posted by theinvestor

That's great and all but i am referring to it being overvalued based on a long term position. Take a look at the history of the loonie.

The driving forces right now in the canadian dollar is purely speculation and for that reason i believe it is overvalued and due for a correction.

Whether short term it goes to 1.10 in my opinion is irrelevant. Long term, i would be buying USD as the recovery is inevitable.

Economics 101 anyone?

Interest rates go up, dollar goes up. The Canadian dollar will be at $1.05 with little effort, and stay there unless the U.S. rates go higher.

**TheLegendaryJP** · 03-26-2010, 04:58 PM

Here is the reason and only reason I believe the USD will and should out pace the loonie.

Our ( Canadian ) economy relies HEAVILY on the US and should the US do well their dollar will be stronger ( naturally ), so take your pick, bet on the loonie in the long run and expect to see our economy start to suffer but out weigh the USD or bet on the whole economy turning a corner and thus the USD is my choice.

Ill take a weaker loonie all day any day! Its good for us who do US business primarily and a nation as a whole. The government makes attempts to keep it that way so youd be betting against a governemnt and BANK ( BOC ) if you bet the loonie long term, heck even 3-6 months.

**draggar** · 03-26-2010, 05:08 PM

So I should start charging CDN$ for my domains?

(and quickly convert to US$)

**hugegrowth** · 03-26-2010, 05:52 PM

I converted a US cheque at the bank this week and got less in C$. ad sense will probably be the same thing.

Great for doing .com and other domain renewals, or buying domains in US$. Not great for converting your affiliate cheques and so forth.

I remember getting almost 50% when converting US cheques to Can in early 2000's.

You can never count out the US, but the situation of their dollar doesn't look great right now. I would say the Canadian economy will become less dependent on the US over time, as more of our resources are bought up by Asian countries, and other developing countries. I would be nervous holding everything in US dollars now, unless it was invested in US companies that do business globally and get their revenues in other currencies, like MacDonalds and Coke.

**Namefox** · 03-26-2010, 06:02 PM

Originally Posted by draggar

So I should start charging CDN$ for my domains?

(and quickly convert to US$)

LOL...probably a good idea. I cashed a cheque (for you US people...check) today and lost money in the conversion into Canadian. US $ is still tanking.

**TheLegendaryJP** · 03-26-2010, 06:04 PM

You must not have read my reply

The US is the #1 importer of our goods, making up HALF or more of the dollars coming in, behind them, WAY behind them is the UK and Japan. There is no feeling safe in either currency, they are ONE. NO China to buy up more goods, unless you think China will buy $250-$300 Billion dollars more this year coming lol

If you play the currency game its short, in and out! Not because you feel safe in USD or CAD. The world gov/banks work as one essentially, they all want to see each others currency hold. When the US saw the crash in 29-30 it was painful to europe too.

Bottom line, play short spurts, in and out but never bet us or cad as a security to a major depression. And besides unless youre playing with 7 fugures whats the point? The risk is not worth the reward on small sums, things change quickly, spurts and down turns of several points a day are not managed well by the average joe.

Not saying picking up $XXX-$XXXX or more here and there on exchange isnt nice but it isnt planned for me either.

**msn** · 03-26-2010, 06:41 PM

Originally Posted by TheLegendaryJP

You must not have read my reply

The US is the #1 importer of our goods, making up HALF or more of the dollars coming in, behind them, WAY behind them is the UK and Japan. There is no feeling safe in either currency, they are ONE. NO China to buy up more goods, unless you think China will buy $250-$300 Billion dollars more this year coming lol

If you play the currency game its short, in and out! Not because you feel safe in USD or CAD. The world gov/banks work as one essentially, they all want to see each others currency hold. When the US saw the crash in 29-30 it was painful to europe too.

Bottom line, play short spurts, in and out but never bet us or cad as a security to a major depression. And besides unless youre playing with 7 fugures whats the point? The risk is not worth the reward on small sums, things change quickly, spurts and down turns of several points a day are not managed well by the average joe.

Not saying picking up $XXX-$XXXX or more here and there on exchange isnt nice but it isnt planned for me either.

Okay, now we have Business 101:

You need to differentiate between quantity and quality. Canada sells oil, fertilizer feedstock like potash, grains, wood and various minerals. Gold is up, uranium is up and other in-demand resources are doing well.

We do not really sell much in finished goods to China, but they they do like our wheat and coal.

If the U.S. dollar goes down by 10% next year, oil and gold will rise to balance out the purchasing power of the sellers of that oil and gold. The folks in the United States will still need to tank their cars, and plenty of people will buy gold as a store of value.

Sure, the United States gets manufactured products from us, and if things get tougher, we will produce less of those things, but overall we will sell more in dollar terms because our commodities will cost more.

**TheLegendaryJP** · 03-26-2010, 07:16 PM

The gold and oil do not compensate for $300 billion dollars, sorry. The only line that matters is the bottom line and unless the demand for those 2-3 specific commodities make up the VAST majority of funds, it doesnt matter much at all.

As for oil in particular I think people need a Oil 101 class, Canada's oil sands are NOT efficient ( cost wise ), secondly not all oil is made the same and thus not all products can use the same discovery.

**msn** · 03-26-2010, 08:39 PM

Originally Posted by TheLegendaryJP

The gold and oil do not compensate for $300 billion dollars, sorry. The only line that matters is the bottom line and unless the demand for those 2-3 specific commodities make up the VAST majority of funds, it doesnt matter much at all.

As for oil in particular I think people need a Oil 101 class, Canada's oil sands are NOT efficient ( cost wise ), secondly not all oil is made the same and thus not all products can use the same discovery.

Okay, now we have Political Science 101.

The expensive-to-get, dirty oil from the oil sands is close to home and where there the U.S. can see it. We can deliver every day, and so far, there is a reliable delivery each and every day.

So when oil reaches $145 USD per barrel, with 1.2 million barrels per day, you start talking about serious money: $174 million USD per day, $1,218 million USD per week, or $63,510 million USD per year - a mere $63.5 billion USD.

Okay, that is just 20% of your $300 billion, but we did not cover gold, nor natural gas, nor uranium, which tracks oil to a degree.

So we can have a reduction in manufactured goods and still have the same total value of exports due to the revaluation of the products and materials supplied as the ratios change due to supply and demand.

We would not really wish to see disruptions, but Canada is better-placed than many other countries if things get tough and we should not forget why.

**TheLegendaryJP** · 03-26-2010, 09:15 PM

Yes but the US is rich with natural gas, so much so from approx 1907-1920's they literally were blowing NG off the oil wells into the air and didnt use it for 20 years.

We both make points but at the end of the day the our ( Canadian ) survival is based heavily on the united states. That is why ultimately there is no " comfort " in CAD currency for me should WW3 break out, the markets crash etc.

We may be a more stable economy, true but a stable economy that needs that big debt riddled one to the south