Where did our CAD go??

[bavaria]

No, although I do think that the media creates panic, especially in America.

This is a necessary correction. It has to happen to strengthen the economy. Canada relies on exports, manufacturing, and tourism. A high Cdn dollar makes those all too expensive for buyers, and with fewer buyers the national economy suffers. Same as Germany.

 

[Honeystar120608]

No, although I do think that the media creates panic, especially in America.

This is a necessary correction. It has to happen to strengthen the economy. Canada relies on exports, manufacturing, and tourism. A high Cdn dollar makes those all too expensive for buyers, and with fewer buyers the national economy suffers. Same as Germany.

So in simple terms, it's like we are on sale?? It's starting to feel like we are on clearance.

 

[bavaria]

Right! how often do you pay full price for things, especially if you think that they are overvalued or overpriced? you wait for them to go on sale and pay what you think is realistic, right?

It's a GOOD thing, trust me. Fewer job losses if people are buying your products and visiting your country. A higher currency means fewer Americans.

Here is a scary figure from when the Cdn dollar was high:

Journeys to Canada by U. S. residents fell 16 percent from June 2007 to 2.56 million, Statistics Canada said, pushing the total number of foreign visitors down 13 percent to 3.13 million. Neither figure has been lower since the Ottawa-based agency started keeping such travel records in 1972

http://www.buffalonews.com/businesstoday/localbusiness/story/418872.html

Fewer visitors means less money in the tourism sector, and fewer people buying souvenirs and other things to bring back with them.

 

[Honeystar120608]

Right! how often do you pay full price for things, especially if you think that they are overvalued or overpriced? you wait for them to go on sale and pay what you think is realistic, right?

It's a GOOD thing, trust me. Fewer job losses if people are buying your products and visiting your country. A higher currency means fewer Americans.

Here is a scary figure from when the Cdn dollar was high:



http://www.buffalonews.com/businesstoday/localbusiness/story/418872.html

Fewer visitors means less money in the tourism sector, and fewer people buying souvenirs and other things to bring back with them.

That is a great explanation. I definitely don't want jobs lost. I was just hoping to get the sale lol I am a tourist too. However, perhaps that speaks volumes for the American economy. Just as long as the dollar doesn't KEEP going down. DH said someone told him (or her heard) it will go to .50 to the USD. It better not! I told him it would never, but how do I know??

 

[bavaria]

Believe me, I know that it is scary. I travel all around the world, and since last summer Americans were not as common in some of the peak travel places.

It was eerie this summer to see very few of them at all in Salzburg, for instance, which is usually packed with Americans during Festival season. Same with Paris, Cologne, Munich, Rome, Nice, and many other cities this summer. There were still some around, but not the masses we used to see. And while local Europeans are not travelling abroad, they don't spend the same amounts or buy as much as tourists.

So when the US dollar strengthens, it means they will start to travel again and we will all benefit. The world is very interconnected now, not like it used to be.

 

[brighteyes]

Ugh! So by the sounds of it, I should go pay my trip off tomorrow?? It is due by the 22nd, but if I wait the dollar will probably fall more.

Is that what I hear you all saying?

Stephanie

 

[Honeystar120608]

Believe me, I know that it is scary. I travel all around the world, and since last summer Americans were not as common in some of the peak travel places.

It was eerie this summer to see very few of them at all in Salzburg, for instance, which is usually packed with Americans during Festival season. Same with Paris, Cologne, Munich, Rome, Nice, and many other cities this summer. There were still some around, but not the masses we used to see. And while local Europeans are not travelling abroad, they don't spend the same amounts or buy as much as tourists.

So when the US dollar strengthens, it means they will start to travel again and we will all benefit. The world is very interconnected now, not like it used to be.

Wow Bavaria, that is great information. The travelling I do is around the block with my kids. lol So I definitely don't see those sorts of things. I totally get it. So, I am getting from what you are saying is that we lower it while the American economy is tipsy turvy, and when they feel secure in their finances, they will feel like travelling more and our dollar might slowly start to go back up. This is just to lure them in for now, rather than later on when they will be *hopefully* more financially secure?

That is a great perspective. Does mean I have to pay more for this trip though. Which as it is, we have been saving, no McDonalds here no Pizza there. However, DH does have a job, vs those loosing theirs.

Can anybody anticipate at what point it will stop? I am getting a little scared as to what we can afford and what we can't. Especially during Christmas Season.

 

[bavaria]

Ugh! So by the sounds of it, I should go pay my trip off tomorrow?? It is due by the 22nd, but if I wait the dollar will probably fall more.

Is that what I hear you all saying?

Stephanie

I think that Honeystar asked the magic question - when is the 'right' time to exchange currency? I do think that the decline will level off, but it make take a few days or weeks. I don't think that the Cdn dollar will go back to par with the US dollar unless something really significant happens - even election results make me doubt that would happen.

But then, nobody really knows. Forecasting has become much more difficult in the last week, but I think that it will start to settle down in a few weeks. I could be totally wrong, even if I was right year to date.

I will personally be moving some currencies around tomorrow to take advantages of the changes from this week. But I won't advise anyone else - you have to take the information and make your best decision.

Good luck!

 

[Honeystar120608]

Pay day is Wednesday, and then I have to wait until the money gets transfered to my credit card to make the payment. Time is definitely my enemy.

 

[snickerboo]

Ugh! Right when we are getting ready to go. I was going to do my xmas shopping while I was down there, but not if the loonie keeps dropping. I read reports yesterday that some of it has to do with the election. So, get out and vote on the 14th and make it count. Thankfully, we've paid for the vacation but the loonie taking a hit means we'll have to economize a little on souvenirs and food.

 

[SydneyFalco]

Argggh. I knew we shoulda paid for our trip back in the heady days.

 

[wee-haggis]

I hate to say this....but, I think the only way we will see the dollar go back up again in the near future is for the Tories to win next Tuesday.

 

[DutchsMommy]

Just put the remaining balance of our January trip on the Card. Hate to do that when the xchange has dropped so much, but I don't think it's going back up any time soon so I bit the bullet.

 

[snickerboo]

Ugh. I don't know whether to buy our spending money today or wait until next week. It's 80 cents on the dollar at RBC (just came from there). I'm sure the Tories will win next week so I'm not sure why that would be effecting the dollar.

I think the dollar is just 'righting' itself. When we were close to par, it was bad for our economy. My dh works for an American company and they are much more liely to keep a Canadian plant open if they can pay salaries at 75 cents on the dollar. It's the right thing for the Canadian economy, it's just horrible timing for my trip!!!

 

[wee-haggis]

I read reports yesterday that some of it has to do with the election.

I believe this to be true as well.
I also think that if Stephen Harper wins (which is the most likely scenario....hopefully with a minority government), then the dollar will go back up. Unfortunately not quite as high as that glorious day in October/07 (I think it was) where we were able to get our US$'s at the rate of US$1.06.
Its down to 84c today

 

[Honeystar120608]

Ugh. I don't know whether to buy our spending money today or wait until next week. It's 80 cents on the dollar at RBC (just came from there). I'm sure the Tories will win next week so I'm not sure why that would be effecting the dollar.

I think the dollar is just 'righting' itself. When we were close to par, it was bad for our economy. My dh works for an American company and they are much more liely to keep a Canadian plant open if they can pay salaries at 75 cents on the dollar. It's the right thing for the Canadian economy, it's just horrible timing for my trip!!!

I wouldn't be too sure of the Tories winning. You just never know.

DH works for an American company as well, so in a sense he feels more secure when the dollar goes down. However, he didn't want it to go down RIGHT when we are about to pay for DW. As if we have a say.

Also, from what TD has told me, the banks also are a live system. They are always changing the dollar as it goes up and down.
Im not sure if it is comparible but www.xe.com is a great online calculator for currencies.

I just wanted to add, it's not just the US we do trade with. Yes, she is our southerly neighbour, therefore trade is easy to do with them. But I think (Im by no means an expert) we do a lot of trade with Asia as well. Specifically China and Japan perhaps? I feel as though I should know this. lol

As it stands right now, the dollar is at .85 on the USD, which, since it hit .82 today, isn't so shabby. Gotta have hope somewhere.

So this is my theory. I have been on a long quest for the free dining that has been offered. Of course, nothing is in my control with this since it revolves around the PIN emails and mailouts, and the DIsney Visa which...of course... we can't apply for because we aren't Americans. So, IF our dollar stays low... IF the US economy keeps swirling in the toilet...NOT THAT I HOPE FOR THIS...JUST IF... there will be cancelations Im sure. Which may push DW to put the Free Dining out to General Public. Between Gas and the hope for Free Dining. That is where we can make up our money in the low dollar 'crisis'. (which...I know..is actually the opposite of a crisis.)

Lets just remember that we are complaining about spending more to go to Disney World while many many factory workers are wondering how to pay their mortgage since they just lost their main source of income. It's hard to be humble since we have to dish out MORE money on an already not so cheap trip. But the point is...we get to go and they dont.

Im excited to see where next week will bring us with the election. I hope everyone is going to have a great Thanksgiving weekend. Let's be thankful DW in 9 weeks

 

[JW2]

I wouldn't be too sure of the Tories winning. You just never know.

DH works for an American company as well, so in a sense he feels more secure when the dollar goes down. However, he didn't want it to go down RIGHT when we are about to pay for DW. As if we have a say.

Also, from what TD has told me, the banks also are a live system. They are always changing the dollar as it goes up and down.
Im not sure if it is comparible but www.xe.com is a great online calculator for currencies.

I just wanted to add, it's not just the US we do trade with. Yes, she is our southerly neighbour, therefore trade is easy to do with them. But I think (Im by no means an expert) we do a lot of trade with Asia as well. Specifically China and Japan perhaps? I feel as though I should know this. lol

As it stands right now, the dollar is at .85 on the USD, which, since it hit .82 today, isn't so shabby. Gotta have hope somewhere.

So this is my theory. I have been on a long quest for the free dining that has been offered. Of course, nothing is in my control with this since it revolves around the PIN emails and mailouts, and the DIsney Visa which...of course... we can't apply for because we aren't Americans. So, IF our dollar stays low... IF the US economy keeps swirling in the toilet...NOT THAT I HOPE FOR THIS...JUST IF... there will be cancelations Im sure. Which may push DW to put the Free Dining out to General Public. Between Gas and the hope for Free Dining. That is where we can make up our money in the low dollar 'crisis'. (which...I know..is actually the opposite of a crisis.)

Lets just remember that we are complaining about spending more to go to Disney World while many many factory workers are wondering how to pay their mortgage since they just lost their main source of income. It's hard to be humble since we have to dish out MORE money on an already not so cheap trip. But the point is...we get to go and they dont.

Im excited to see where next week will bring us with the election. I hope everyone is going to have a great Thanksgiving weekend. Let's be thankful DW in 9 weeks

You said it girl! I was just reading this thread and kept thinking about the book I was reading "28 Stories of AIDS in Africa" but I didn't want to minimize everyone else's concern. Traveling is very important to us so I guess we will have to alter either the length of time or as you said, clothes we buy, etc. I can't believe that in March 2008 we exchanged money on par and even got a little more than what it cost us!!! Just 6 months ago!!

We are leaving in 3 weeks and luckily exchanged some money when it was $0.92 - and I wasn't that happy but now seeing what the dollars done, I guess it was a good thing. As you suggested, we need to put it in perspective when we think of jobs lost, etc.

P.S. So glad this thread did not turn into a political - who is going to win - thread.

 

[who's ur daddy?]

We are leaving in 3 weeks and luckily exchanged some money when it was $0.92 - and I wasn't that happy but now seeing what the dollars done, I guess it was a good thing. As you suggested, we need to put it in perspective when we think of jobs lost, etc.

We exchanged too at .93 a few weeks ago. Reluctantly, but at least it's heads and tails better than the rate today.

Going to have to cancel the March trip if this keeps up...

 

[snickerboo]

85 on the USD

Actually, it's 83.63, and with the fickleness of the market, that's exactly what RBC is charging to exchange it now. With the drop Friday, it could drop below 80 cents on Monday.

I just wanted to add, it's not just the US we do trade with. Yes, she is our southerly neighbour, therefore trade is easy to do with them. But I think (Im by no means an expert) we do a lot of trade with Asia as well. Specifically China and Japan perhaps? I feel as though I should know this. lol

Over 3/4 of Canada's exports are to the US. Definitely our most valuable exports (commodities) go to the US. You can't compare apples and oil when it comes to export. We provide over half of American oil, a big part of why our dollar dumped. The other factors being mainly an international surge in the markets to buy up the US greenback, and Canada's announcement of mortgage bailouts which could effect our federal surplus (did you know Canada is the only G8 to post surplus?). I guess I will mentally have to calculate gas price savings when complainly as I exchange my CAD to USD. LOL I probably come out even in the long run.

 

[Honeystar120608]

See, I didn't know we did THAT much trade with the US. I mean, I knew it was a lot, but I didn't know it was that much. Perhaps I have it all confused, but if we export oil to them...is that the same as crude oil that turns into gas? Just trying to understand it all. I thought the US made a lot on their own.
Again, hopefully the low gas prices help us out in one area since the dollar isn't helping us out for DW
NOw Im wishing the week away. I need to get our $$ on the visa to pay this off!! I did have a portion of the payment on our cc, so I made that small payment the other day. Better to save $30-$50 than not right?

Ok, back to politics (sorry) I am just wondering, someone had mentioned that if the conservatives (?) won the majority vote than there is a better chance of the dollar going back up. But... as previously mentioned...wouldn't that be a bad move for the economy? Isn't that what they keep harping on Harper about... all the jobs lost. Not trying to figure out who is 'right' or 'wrong' with our leaders. Just trying to make sense of it.

You guys are awesome, I really love this thread, love to learn something new every day.