Usd/cad

Beginner Questions
1

The USD/CAD is trading at 1.000. This is the first time in 36 years that CAD is higher then USD. I have not confirmed this fact it is just what I have heard. The question I pose here is since this is at a 36 year low, should this be a MAJOR support line? Accorrding to what common sence tells us we should buy. It should bounce up like nobodys business. But lets look at everything that comes into play here. Oil is going up, US is starting an election year, China is buying everything in sight and the US is in an unpopular war. I have a feeling that the green back will continue to fall until after the election. It should bounce back after January 2009 after the new president is sworn into office.

Whats you thoghts on this???

2

Da market is peeping the central banks right now. If the Fed gonna keep spittin’ a weak game (cutting rates) while the BoC keeps spittin’ them hard jointz (raising rates or at the very least keeping rates on hold), then the dolla holla will continue its freefall against the loonie tunes. Nah mean?

The big question is how much is Candian’s economy tied with the US economy? Can Canada really continue to grow while their neighbor is stuggling?

Oil prices (which positively correlate with the loonie) are near all-time highs but will they hold? Hurricane season, as well as the US “driving season” is either over or winding down, and oil prices tend to fall when this happens.