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Canadian Dollar Nears Parity Again, And This Time It Could Stick

As a Canuck living in Mexico, the strength of the Canadian loonie is music to my ears.

As an aside, Mexican cerveza is good….but it’s tough to beat Canadian beer! :D

The latest on the loonie…

Canadian dollar nears parity again, and this time it could stick: economists
40 minutes ago

By Julian Beltrame, The Canadian Press

OTTAWA – The Canadian dollar is back knocking on parity’s door and this time it looks like it means to break through.

The loonie jumped sharply Wednesday morning, rising almost a cent to 99.88 cents US before closing at 99.52 cents.

But analysts say it is only a matter of time before the loonie again reaches parity and perhaps well beyond, noting that any combination of a strong economic indicator for Canada or weak signal from the U.S. could do the trick.

“The U.S. dollar is extraordinarily weak,” said Scotiabank currency analyst Camilla Sutton, “which implies we’ll hover very close to parity for quite awhile.”

Since last reaching parity in April, the loonie has approached the psychological barrier several times, only to fall short and retreat.

Sutton said this time may be different, given that the U.S. dollar continues to face pressure and has been falling against most of the world’s currencies as the American economy struggles.″

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