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Dollar soars near three-year high on rate-hike expectations



 
 
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  #1  
Old July 23rd 11, 10:46 PM posted to misc.invest.canada,soc.culture.canada,can.general
Some Guy
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Posts: 14
Default Dollar soars near three-year high on rate-hike expectations

abc wrote:

OTTAWA - The Canadian dollar continued to surge Wednesday after
the Bank of Canada issued a hawkish report Tuesday on its
outlook for raising interest rates and indicated it expects
inflationary pressures to rise over the next nine months.


Just shows you how schizophrenic the forex market is.

The BoC *doesn't* raise rates, yet the traders push the dollar higher
regardless.

The traders have been expecting a rate increase for months, and each
time the BoC *doesn't* raise the rate, the traders push the dollar
higher anyways.

It's actually funny - the traders have factored in the same expected
rate increase numerous times. How many times can you factor in the same
solitary rate increase?

The traders are even more retarded by ignoring that the BoC says the
same thing each time they announce no rate increase: Which is, that the
persistent high canadian dollar is a drag on the economy. Translation:
There will be no rate increase with the dollar sitting above parity with
the USD. You would think the numb skull traders would understand that.

You would also think that inflation in canada would be none-existent,
given that our high dollar should be able to buy imports from the US
much more cheaply, resulting in lower retail prices compared to a few
years ago. But no, still no drop in retail prices for things imported
from the US.

Don't worry. When the US gov't defaults because congress didn't raise
the debt ceiling, the market will panic and the Canadian, Australian and
NewZealand dollars will all drop like a rock when the speculators
abandon them in their "flight to safety" back to the US greenback.
  #2  
Old July 24th 11, 02:02 PM posted to misc.invest.canada,soc.culture.canada,can.general
The Doctor
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Posts: 4
Default Dollar soars near three-year high on rate-hike expectations

In article ,
Jerome Corsi Odinga Jr wrote:
Some Guy wrote in :

Don't worry. When the US gov't defaults because congress didn't raise
the debt ceiling, the market will panic and the Canadian, Australian and
NewZealand dollars will all drop like a rock when the speculators
abandon them in their "flight to safety" back to the US greenback.


One minor little problem - the US takes in $200 billion a month, which is
enough to cover interest on T-Bills, the military, and all the
entitlements.

There will be no default, just a legally imposed balance budget - the bonus
being that it won't take an amendment to the Constitution to do it.

Be of good cheer - Every cloud has a silver lining.



I cannot wait to see non-co-operate between Dems and Repos on this one.
--
Member - Liberal International This is Ici
God, Queen and country! Never Satan President Republic! Beware AntiChrist rising!
http://twitter.com/rootnl2k http://www.facebook.com/dyadallee
IT is done! http://groups.google.com/group/rec.arts.drwho/about
  #3  
Old July 24th 11, 02:28 PM posted to misc.invest.canada,soc.culture.canada,can.general
Some Guy
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Posts: 14
Default Dollar soars near three-year high on rate-hike expectations

Jerome Corsi Odinga Jr wrote:

Don't worry. When the US gov't defaults because congress didn't
raise the debt ceiling, the market will panic and the Canadian,
Australian and NewZealand dollars will all drop like a rock when
the speculators abandon them in their "flight to safety" back to
the US greenback.


One minor little problem - the US takes in $200 billion a month,
(...)

There will be no default, just a legally imposed balance budget
(...)


Your "minor little problem" does not speak to the point that I raised.

The lack of a resolution over the debt ceiling will be seen as a crisis
by the financial community and they will react in a panic by dumping
equities and flying back to the perceived safety of cash, notably the US
dollar. This will come at the expense of currencies that have been
inflated lately due to risk appetite: CDN, AUS and NZ dollars.

Oil will also probably fall, on the expectations of a fall in consumer
demand and increase in unemployment caused by the debt crisis (and make
no mistake, the media will portray this as a crisis even if it isin't).
  #4  
Old December 21st 11, 10:29 AM
khizer551 khizer551 is offline
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thx for info
 




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