USD To CAD

  USD to CAD .  What is it?  You hear the term everywhere in Canada.  You hear it mentioned on TV, on the radio.  You see it online and in the newspapers.  There are even Facebook groups dedicated to it.  Why do people care so much about it?  People write reports about it and debate it passionately and care a lot about where it is and where it is going in the future.  It seems to change all the time.  What in the world is it and why should you care? The term USD to CAD is generally denotes the “US dollar to Canadian dollar exchange rate”.   It is the price of 1 US dollar in Canadian dollars.   For example, a USD to CAD rate of 1.27 means that each US dollar is worth 1.27 Canadian dollars.   It also means that 1 Canadian dollar is worth 0.79 in US dollars.   This last number is sometimes known as the inverse rate because it is equal to the inverse of USD to CAD (ie: 1/1.27 = 0.79).   The USD to CAD exchange r...

  The Canadian dollar has now given up all the gains it had made earlier in the week in response to the Bank of Canada’s optimistic outlook on the prospects for economic recovery.  The Loonie is down 0.5% this morning and right back to where it started the week.  The move away from the Canadian dollar to the US dollar comes as stocks retreat from record levels.  The decline in risk sentiment in the overall markets is being attributed to a revaluation of whether Biden will be able to pass his 1.9 trillion dollar stimulus package in light of mounting opposition in Congress.  There is also a sense that vaccine optimism has gone too far given the currently grim situation in many parts of the world.  With the Loonie now back to where it started the year, we continue to reiterate our view that the for the near-future, expect the USD to CAD exchange rate to be volatile but directionless.  That is, we expect a lot of fluctuations from day to day but not a lot...