Originally Posted by Youponder
Funny and a little sad to see this thread revived.
Our suppliers have not adjusted their prices accordingly and the high flying C$ is a major disaster for us. It went on a good downward run 2 months ago but is right back to its 10 year highs.
I don't think anyone can justify it going too much higher as one of the major reasons for its rise is the because of US$ negativity. The fact remains that the Canadian economy is but a microcosim of the US's and a slowdown in the US will have to hurt Canada and thus C$. Such issues as Canada being a net exporter of oil and the Bank of Canada's way too hawkish stance is what's really causing this.
Things will be interesting the next couple of months with the US elections and lots of important data being released.
The CDN dollar is high because our collective productivity is finally getting better and we should be happy about that. The conter balance effect will come from cheaper imports that will keep our manufacturers honest. The decline of the US $ is not good for our oil producers because oil is priced in US $.