Thursday January, 14, 2016

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Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð Thursday January, 14, 2016 Canadian dollar will drop to 59 cents US in 2016, Macquarie forecasts A day after the loonie slipped below the 70-cent US level for the first time since 2003, a forecaster at investment bank Macquarie says he expects the loonie to lose another 10 cents to reach an all-time low of 59 cents by the end of 2016. David Doyle of Macquarie Capital Markets Canada Ltd. lowered his Canadian dollar forecast to 59 cents US on Tuesday. That would eclipse the all-time low for the loonie, set on Jan. 21, 2002, at 61.79 cents US. Doyle knows of what he speaks. Last February, when the Canadian dollar was valued at just over 80 cents, he Ñ correctly, as it turns out Ñ predicted the loonie would hit 69 cents US at some point in the next 12 months. It did so Tuesday. "Once [the loonie] reaches this level," Doyle said, "it should remain subdued through [the end of] 2018 and potentially even longer." Doyle's new forecast doesn't see the loonie above 65 cents US at any time between the end of 2016 and the two years that follow. The loonie has been whipsawed of late by oil and the U.S. dollar. Oil prices can't find a bottom, with a barrel of the North America crude oil benchmark dipping below $30 a barrel for the first time in 13 years on Tuesday. That's dragging the loonie down with it, as Canada's dollar is widely considered to be a play on oil prices. But strength in the U.S. dollar is making the loonie look even worse. Economic uncertainty makes investors flock to assets perceived as safe, and for the most part none are perceived to be safer than the U.S. dollar. That drives up the greenback's value. So while the Canadian dollar is sliding lower compared to most currencies, it looks especially cheap compared to the U.S. buck. (Source: CBC News) http://www.cbc.ca/news/business/macquarie-loonie-forecast-1.3401644 Canada, USA, dollar, loonie, currency, George Washington, bridge, cross, borde

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday January, 14, 2016

Canadian dollar will drop to 59 cents US in 2016, Macquarie forecasts

A day after the loonie slipped below the 70-cent US level for the first time since 2003, a forecaster at investment bank Macquarie says he expects the loonie to lose another 10 cents to reach an all-time low of 59 cents by the end of 2016.

Friday January 30, 2015David Doyle of Macquarie Capital Markets Canada Ltd. lowered his Canadian dollar forecast to 59 cents US on Tuesday. That would eclipse the all-time low for the loonie, set on Jan. 21, 2002, at 61.79 cents US.

Doyle knows of what he speaks. Last February, when the Canadian dollar was valued at just over 80 cents, he — correctly, as it turns out — predicted the loonie would hit 69 cents US at some point in the next 12 months.

It did so Tuesday.

“Once [the loonie] reaches this level,” Doyle said, “it should remain subdued through [the end of] 2018 and potentially even longer.”

Editorial Cartoon by Graeme MacKay, Editorial Cartoonist, The Hamilton Spectator - Thursday October 15, 2009 Big problems in higher dollar There is a certain giddiness attached to a soaring Canadian dollar, with visions of cheaper trips to Florida or New York for those who canÊafford to travel. There is also a degree of smugness about us doing better than the Americans in managing the economy. We should dismiss such thoughts, however. The fact is that a higher-valued dollar is a disaster for Ontario's economy, based as it is onÊexports of manufactured goods into the U.S. market. Canadian Manufacturers and Exporters (CME) estimates that, for every hike of oneÊcent in the value of our dollar, 25,000 factory jobs are lost. And since the beginning of this year, the loonie has gone up 15 cents. Partly this is attributable to our better fiscal situation, in comparison to the tax-averse Americans. (The U.S. deficit Ð a staggering $1.6Êtrillion this year Ð is "unsustainable," according to the Congressional Budget Office.) And partly it can be traced to rising prices forÊcommodities, particularly oil, for the loonie is now a "petro-dollar." For manufacturers, this is a double whammy: the higher dollar makes their products less competitive in the American market, and higherÊoil prices drive up their costs. "Canadian manufacturers are really caught between a rock and a hard place," says CME President Jayson Myers. Prime Minister StephenÊHarper notes the "difficult effects" on the economy. (Source: Toronto Star) Canada, Dollar, loonie, strength, strong, imports, exports, fish, skeleton, bones, economy

The good old days

Doyle’s new forecast doesn’t see the loonie above 65 cents US at any time between the end of 2016 and the two years that follow.

The loonie has been whipsawed of late by oil and the U.S. dollar. Oil prices can’t find a bottom, with a barrel of the North America crude oil benchmark dipping below $30 a barrel for the first time in 13 years on Tuesday. That’s dragging the loonie down with it, as Canada’s dollar is widely considered to be a play on oil prices.

June 17, 1998But strength in the U.S. dollar is making the loonie look even worse.

Economic uncertainty makes investors flock to assets perceived as safe, and for the most part none are perceived to be safer than the U.S. dollar. That drives up the greenback’s value. So while the Canadian dollar is sliding lower compared to most currencies, it looks especially cheap compared to the U.S. buck. (Source: CBC News)