Canadian Dollar rising fast against the U$D

[Joe]

...on one hand it's good for the Canadian consumer cuz it makes products priced in US dollars or imported from there cheaper.

But on the other hand it usually forecasts a slowing US economy. And if it rises too fast its often an indicator that a recession is imminent.

The optimal exchange rate the powers that be want is about 75 cents to the US dollar. It's 80 cents now. 90 cents starts to get very high. If it's on par 1:1 it's often a sign the US economy is in trouble.

Happened in 2010 or so.

Anyway that exchange rate is just a barometer.

A high Canadian dollar means that price of oil is high. When it gets too high the American elites/business class throws up its hands in frustration and sez "Time for a recession. We ain't paying those prices no more!"

That's what I've observed in the past.

 

[X]

Plus our money is prettier

 

[LotusBud]

Our money is prettier as well. But the dollar gained a shit ton on the euro very, very quickly. It's lost a little ground in the last couple of weeks, but not much. I'm not sure what that all portends.

 

[Oerdin]

Amazing isn't it. You print $10 trillion new dollars and then the value of the dollar goes down. This is what is mostly driving inflation along with Biden and the dems driving up energy prices to impoverish regular people.

 

[LotusBud]

Amazing isn't it. You print $10 trillion new dollars and then the value of the dollar goes down. This is what is mostly driving inflation along with Biden and the dems driving up energy prices to impoverish regular people.

Except, like I said, the dollar is very strong against the euro. I think the euro market is much bigger than the Canadian dollar market.

 

[Oerdin]

That is because the market has factored in that the Euro economies will be hit by a far worse energy shock. Also the Euro Central Bank went even more wild with the "money printer went burrrr" than the U.S. Federal Reserve. So that EU officials did even worse than US officials doesn't negate that US officials did terrible. It just means EU officials were even mire incompetent.