In a stunning turn of events, the Canadian dollar is almost the same value as the US greenback.  The Canadian currency, nicknamed the loonie for the aquatic bird on the C$1 coin, has enjoyed a continuing rally  and has a high likelyhood of surpassing the value of the US dollar in the coming months.

“As long as equities continue to go up, it will be positive for the Canadian dollar,” said Maria Jones, a currency trader in Toronto at TD Securities Inc., a unit of Canada’s second-biggest bank.  Stocks will continue to rally as long as “we are seeing moderate growth in the U.S.” and the Federal Reserve holds interest rates near zero.

Another indicator of the weakness of the current US economy.  As long as the US economy remmins in this holding pattern of contunued recession, we can expect that loonie will soon be worth more than the greenback.

source:  http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aU5OBX1AsQgA

Tags: Amp, Aquatic Bird, Bank Stocks, Canadian Currency, Canadian Dollar, Currency Trader, Current Us Economy, Federal Reserve, Greenback, Interest Rates, Likelyhood, Loonie, Maria Jones, Moderate Growth, Newsarchive, Pid, Rally, Recession, Sid, Td Securities Inc

This entry was posted on Sunday, October 18th, 2009 at 5:37 pm and is filed under Economic Outlook, Market Forecasts, market forcasts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.