Some money watchers believe U.S. dollar will begin to weaken once its economy softens, and the loonie could strengthen
With Donald Trump set to become president of the United States on Monday, uncertainty continues to swirl around his threat to impose a 25 per cent tariff on all goods that the U.S. imports from Canada and Mexico. Should Trump press ahead with his levies, the Canadian dollar would be caught up in the collateral […] Read moreTag Archives currency
U.S. dollar rises as interest rate cut timing pushed back
The American dollar has gained ground on most of the world’s other currencies, a situation that hurts its ability to export crops, which in turn puts downward pressure on crop futures prices. It is a two-edged sword for Canadian crop exporters. It could give Canadian exports a competitive advantage, but it also drives up the […] Read more
Canadian dollar expected to remain stable for rest of year
Export Development Canada is forecasting stability for the Canadian dollar for the remainder of the 2022-23 crop year. “Our expectation and our forecast is we’ll probably settle in around 75 cents,” said Ross Prusakowski, principal economist with EDC. He thinks the trading range for the loonie will likely be US$0.73 to US$0.78 as inflation concerns […] Read more
U.S. plans new deal with Pacific Rim, other countries
The United States is pursuing an Asian Pacific trade agreement that isn’t a free trade agreement. On May 23, while visiting Japan, U.S. President Joe Biden officially launched talks for the Indo Pacific Economic Framework. The IPEF, as it is known, is a partnership between the U.S., Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, […] Read more
Loonie rise saps export income
Vancouver — Canadian farmers are in jeopardy of losing the currency buffer that has partially shielded them from slumping commodity prices, says an economist. Like most international currencies, the Canadian dollar has been weakening versus the U.S. dollar in recent years. That has resulted in better returns for exporters of Canadian products because most trade […] Read more
Analysts see continuing weakness ahead for loonie
Some currency experts believe the loonie will drop significantly this year, helping buffer Canadian farmers against lacklustre commodity prices. Ken Courtis, chair of Starfort Investment Holdings and a member of federal Finance Minister Bill Morneau’s Advisory Council on Economic Growth, said U.S. President Donald Trump’s economic stimulus program will strengthen the U.S. dollar and drive […] Read more
Loonie pullback supports canola crush and exports
The prices of Canadian agricultural products are supported this week by the falling loonie. It peaked at almost US80 cents last week but as of May 9 had dipped below 77 cents. Reviving worries about the slower pace of China’s economy has put the brakes on the commodity rally this year that had lifted the […] Read more
Figuring out where loonie is going
With a changing of the guard at the Bank of Canada, it is worth examining the outlooks for Canada’s currency and interest rates. Private analyst Prairie Crop Chart recently did a technical consideration of the loonie’s relationship to the U.S. dollar. It noted that the medium term upward trend of the Canadian dollar has stopped […] Read more
Dollar key factor in livestock trends
Loonie gains value | Strong buck cuts industry profits
Manitoba’s beef cow and pig herds have risen and fallen with the value of the Canadian dollar. The two industries have shown a remarkable similarity in the shape of their expansion and contraction, regardless of different market cycles, disease crises and border issues since the 1980s. Manitoba Agriculture livestock industry analyst Marni Donetz said the […] Read moreMy two cents on eliminating the penny
In a post-budget discussion last week, Western Producer Farm Living editor Karen Morrison sent me back in time on a cloud of nostalgia. All she did was note that when we were young, you could stick a penny in a gumball machine and chew on the bounty for as long as the flavour lasted. It […] Read more
