Need a little Currency Exchange advice. CAD and USD

[ClayTrainor]

I'm making most of my income in USD right now, and I live in Canada. I have both American and Canadian bank accounts, so I can cash my cheques in USD and wait for the right time to convert them to CAD.

So to anyone who understands the currency market, do you think this is wise? *Should* the CAD rise over the USD again at some point in the future? Or is maybe the opposite more likely?

Would it be wiser to trade my USD for CAD right now, or wait? What would you do?

Thanks for any advice.

 

[Seraphim]

If this helps:

A lot of guys like Faber, Celente, Schiff have outright said they prefer the CAD to the USD, LONG TERM.

Take that as you will.

 

[ClayTrainor]

Bump for more insight, if anyone has it

If this helps:

A lot of guys like Faber, Celente, Schiff have outright said they prefer the CAD to the USD, LONG TERM.

Take that as you will.

It helps, thanks. I wish I knew where I could find some clips of them talking about this specifically, to see why they are long on the CAD.

 

[mojobo]

If I had to go with either I would choose Canadian dollars. Moneys value is a function of how much you can buy with it and how scarce it is. Since the U.S. is now the worlds largest debtor nation and is running out of people to buy its debt, it is simply going to print money to pay it off. A good way to see which dollar is going to be better or worse long term is to look at a countries debt and trade surplus or deficit. The nation with the bigger debts and trade deficits are the ones that will have weaker dollars in the future.

 

[Zippyjuan]

In a purely financial way of looking at this, what would be the cost of changing your US dollars to Canadian dollars (and back)? How much would the dollar have to depreciate relative to the Canadian dollar for this to be financially better and do you think that will happen over the time you hold your Canadian dollars? Nobody can really say what the CAD will do relatlve to the USD in the future for absolute certainty.

 

[raistlinkishtar]

I'm making most of my income in USD right now, and I live in Canada. I have both American and Canadian bank accounts, so I can cash my cheques in USD and wait for the right time to convert them to CAD.

So to anyone who understands the currency market, do you think this is wise? *Should* the CAD rise over the USD again at some point in the future? Or is maybe the opposite more likely?

Would it be wiser to trade my USD for CAD right now, or wait? What would you do?

Thanks for any advice.

I've been trading CAD/USD for many years now. One thing people don't realize is that Canada has a central bank that also prints money out of thin air. And Canada has a much smaller money supply in circulation. They also have MUCH bigger entitlement programs so you could see the Canadian dollar tank within the next few years.

The highest I've seen the exchange rate go is 1 CAD to 1.10 USD. It's been stuck at parity for sometime now.

I personally love the Big Mac index to figure out future currency moves.

 

[MyLibertyStuff]

I'm making most of my income in USD right now, and I live in Canada. I have both American and Canadian bank accounts, so I can cash my cheques in USD and wait for the right time to convert them to CAD.

So to anyone who understands the currency market, do you think this is wise? *Should* the CAD rise over the USD again at some point in the future? Or is maybe the opposite more likely?

Would it be wiser to trade my USD for CAD right now, or wait? What would you do?

Thanks for any advice.

Short term, probably. Long term, yes. I would say the market is to manipulated to make any decently educated guesses in the short term, however, I dont see the dollar getting much stronger than it has in recent weeks.

 

[rckt24]

Short term, probably. Long term, yes. I would say the market is to manipulated to make any decently educated guesses in the short term, however, I dont see the dollar getting much stronger than it has in recent weeks.

CAD does rise against USD as commodities and natural resource prices increase because they are a big exporter but they do also print because their leaders are afraid their currency rising will hurt their exports to the US.

 

[One Last Battle!]

CAD is a bit better than USD, tbh, though you might want to have assets in both.

If things really go bad for the US, though, Canada will definitely be drawn in as well. Get some other stuff in preparation for that eventuality.

 

[mojobo]

I've been trading CAD/USD for many years now. One thing people don't realize is that Canada has a central bank that also prints money out of thin air. And Canada has a much smaller money supply in circulation. They also have MUCH bigger entitlement programs so you could see the Canadian dollar tank within the next few years.

The highest I've seen the exchange rate go is 1 CAD to 1.10 USD. It's been stuck at parity for sometime now.

I personally love the Big Mac index to figure out future currency moves.

Unless theres something that hasn't been reported the U.S. is still in much more trouble. The fact that they have bigger entitlement programs doesn't carry too much weight because they can always fix that instead of going into debt or devaluing their currency to do it. The two big things to look at is trade deficit and public debt. Since the U.S. has a huge amount of debt the only way it could pay for it without inflation would be to have a bigger trade surplus. Since we don't have more money coming in than we have going out then not only do we not have something to offset the huge borrowing, we have something that adds to the borrowing. The only way to pay off the debt is inflation then. Canada might be in the same position as the U.S. but not nearly to the same degree.

 

[cubical]

Schiff likes CADs because Canada is a natural resource rich country, much like Australia. He believes tangible assets like natural resources are what is wealth. People will be wanting CADs because they will be wanting their natural resources as the world grows. This will cause CADs to be more valuable. They do not have the debt/promises that we have here in America.

 

[MyLibertyStuff]

CAD is a bit better than USD, tbh, though you might want to have assets in both.

If things really go bad for the US, though, Canada will definitely be drawn in as well. Get some other stuff in preparation for that eventuality.

He makes a good point that most fiat currencies are being devalued together. Paper currencies are what will not do well in the future, but the CAD is better off than the USD.

 

[ClayTrainor]

Thanks for all the insight, guys and gals!

 

[clint4liberty]

Doing a Radio Show on Finance

I'm making most of my income in USD right now, and I live in Canada. I have both American and Canadian bank accounts, so I can cash my cheques in USD and wait for the right time to convert them to CAD.

So to anyone who understands the currency market, do you think this is wise? *Should* the CAD rise over the USD again at some point in the future? Or is maybe the opposite more likely?

Would it be wiser to trade my USD for CAD right now, or wait? What would you do?

Thanks for any advice.

We are thinking of doing a show in December on Finance, the Debt etc., What do you think are the topics we should cover? E-mail us: [email protected]

Sincerely,

C. Hardy, KY GrassRoots Radio
http://www.blogtalkradio.com/ky-grassroots-radio

 

[Jim Casey]

I locked in 30 pips profit trading the loonie yesterday thru zulu.

 

[juvanya]

Its been on par for years now. I was just in Canada and 3 out of the 4 businesses I asked at, accepted USD. One guy even let me exchange $120 with him, altho he was going to Hawaii. Talk about a real exchange. We both made out better than otherwise. The currency exchange places wouldve charged us each 10% at least (altho I later found out TD doesnt charge commission on ATM withdrawals), so now he has a bit of money to start. I dont really think the CAD will get much stronger that you have to worry. You might be better off with USD, due to versatility. (You cant spend CAD too far south of the border...unless you buy from me ) the two are going to fluctuate between 1.10 in both directions for the foreseeable future. If youre worried about protecting your wealth, youre better off in silver and gold.

Never EVER exchange USD for CAD at an exchange office when travelling. It seems you can almost always use USD, and you should be able to find someone willing to do a market-based or on-par exchange.