Quote:
Originally Posted by UFO
Really was the CAD doing well previously, or just the USD was doing poorly and making the CAD look good artificially? I'm thinking more the latter. It's been a good few years of cross-border shopping.
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CAD was strong due to commodities
High demand for copper, coal, and oil meant high demand for CAD
commodities are dead = drop in CAD
interest rates were decreased = further drop in CAD
economy will get more and more shaky = likely a further slow drop in CAD
US will raise rates = further drop in CAD
however, over this time we have also had renewed confidence in US economy, leading to the ceasing of QE and at some point soon, a rate raise = increase in value of USD
So, it was a combo of both, which at the same time have reversed.