Article Date: March 24, 2014
The latest report from the U.S. Commodities Futures Trading Commission is blaming the Bank of Canada for the sloping Canadian dollar. The CFTC says "The Canadian dollar is trading at its lowest level since July 2009 and
much of it is due to an implied weak Bank of Canada policy on interest
rate expectations." It is crazy how this is a factor in a strong dollar. I for one 'enjoy a low interest rate', the banks of the world are rich enough. If they are showing profit from rates on mortgages at just greater than 3%, how is it better to take money off my table with higher interest rates? So the banks can show strength to represent our countries wealth. How about leave the money in my pocket? Chances are I am spending it right back into the economy anyway! Meanwhile the rest of the worlds economies are having a huge impact. You may not know it, but as China's manufacturing sector is expected to slow. You can be sure to see another impact on our dollar.