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Exchange rate is killing cross border shopping

The Canadian dollar which just 6 months ago exceeded the value of the US dollar, has dropped significantly in recent months as commodity prices slide lower due to predicted lower demand for resources on a global scale.  Despite the US economic crisis, sky rocketing debt, and political change, the Canadian dollar has struggled to hold on to its true valuation.  Based upon the fact that the Canadian economy is commodity rich, the employment picture remains strong across most of the country, and the soundest banking system in the world, there still seems to be a fire sale on the Canadian dollar.

 

As a result, cross border shopping by Canadians has ground to a halt.  Also for Canadians planning a vacation abroad, the exchange rate is really increasing the cost of such an adventure.

 

Here is a recent article about a small bounce back in the value:

 

 

Construction, commodities boost Canadian dollar


Canadian housing starts were moderate in November according to the Canadian Housing and Mortgage Corp.

"The seasonally adjusted annual rate of housing starts was 172,000 units in November, down from 211,800 units in October." Bob Dugan, chief economist at CMHC's Market Analysis Centre said, "Housing starts in November remain consistent with our forecast which calls for more moderate activity of 212,000 units this year and 178,000 units next year." While today's numbers are in line with CMHC forecasts, it cannot be denied that the Canadian housing market is slowing quite dramatically.

Gold rebounded today trading as high as US$782.10 per ounce in early-morning trading. Both gold and oil were under pressure last week with oil trading near US$41 a barrel. Oil also traded higher today, up US$2.61 an ounce by 10:15 a.m., boosting the Canadian dollar.

At 10:45 a.m. the Canadian dollar was trading up against the U.S. dollar at 0.7962.

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Robert May is the broker and owner of Rainbow Realty of Lethbridge Alberta. He is also a licensed mortgage associate and financing expert with Canada First Mortgage of Calgary Alberta. He has been in the real estate industry since 1993 and offers full MLS real estate services to Lethbridge and surrounding area, as well as mortgage financing, refinancing/renewals, preapprovals, and home equity financing to Lethbridge and Southern Alberta. He can be found online at www.LethbridgeLoans.com



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Robert W May is a Real Estate Broker in Lethbridge Alberta, having now been in the industry for over 23 years. . He was also a licensed Lethbridge mortgage broker and financing expert with Canada First Mortgage of Calgary Alberta for the past 10 years.  He is an industry leader always willing to help train and educate others in how to improve their business models for financial and personal benefit.




 

 

Comment balloon 0 commentsRobert May • December 09 2008 01:55AM

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