Free $50,000 Practice Account With Real-Time Charts, News & Research!
www.Forex.com
Has it reached bottom? We have a free report on the dollar's rebound
www.MoneyMorning.com/dollar_rebound
Four torpedoes headed straight for the dollar. Take cover and profit.
www.InvestmentU.com/Weak_Dollar_Rpt
Guide to Canadian Dollar
Information about the Canadian dollar can help you increase your international businessThe change in the value of the Canadian dollar needs to be watched by U.S. businesses. Canadian dollar exchange rates remained low throughout the 1990s and in the early years of the 21st century. This meant that Canadians had little incentive to purchase higher-priced goods for import. With the higher Canadian dollar value over the past year, however, it had become cheaper for Canadian customers to purchase U.S. goods. Especially in the case of Internet sales, the Canadian dollar exchange makes it economical for customers in Canada to make their purchases from American companies and then import those goods into Canada.
Keep in mind the following when dealing with the Canadian dollar:
1. Remember the importance of the conversion rate between the American and Canadian dollars for trade.
2. Make sure that you have the correct Canadian dollar value when pricing goods.
3. Include both American and Canadian dollar exchange rates for businesses likely to reach customers in both countries.
Action Steps
The best contacts and resources to help you get it done
Research the historical values of the Canadian dollar
Long-term and short-term trends in the respective values of the American and Canadian currency help you set reasonable prices.
I recommend:
The Bank of Canada offers graphs of the Canadian dollar exchange rate against the currencies of the U.S., Australia, Japan, the European Union, Hong Kong, China, Sweden and Mexico from 2002 to the present. For a more detailed graph, X-Rates offers an adjustable graph of Canadian dollar exchange versus many of the world’s major currencies. The graph can be adjusted to show 30 or 120 days, and the data built into the graph is made available as well.
Keep in mind other aspects of the strength of the Canadian dollar
The value of the Canadian dollar is determined principally by world market rates, but its exact worth varies most due to commodities exports. Keep this in mind when dealing with US to Canadian dollar conversion as well as conversion between other foreign monies and the Canada dollar.
I recommend:
The Bank of Canada offers information about the Canadian dollar effective exchange rate index (CERI), which takes into account trade in goods, services, and non-energy commodities in comparison with Canada’s major trading partners.
Gather as much information about the Canadian dollar as possible both when setting prices
Business trends of the past will help you recognize future trends quickly.
I recommend:
General information about the Canadian dollar is available from many websites, including Gocurrency.com and the Bank of Canada.
