usd to cad rate

USD to CAD Rate 1997 to 2010

One of the best ways to consider the usd to cad rate is to study the monthly foreign exchange chart for the pair which clearly shows the point at which the Canadian dollar started its journey of strength against the US dollar.  During 2002 to 2003 we have a series of “tops” with the usd to cad rate attempting on a number of occasions to breach the USD1.60 price handle before finally rolling over to begin the long slide down which culminated with the pair achieving parity in late 2008. Indeed had it not been for the financial crisis & the collapse of Lehman Brothers which led traders and investors back into the US dollar and gold the usd to cad rate was set to continue well below parity, in any case it had already  touched a low of 0.9056.  The dramatic reversal higher in the usd to cad rate back towards the USD1.30 levels simply coincided with the panic that was engulfing the markets during 2008 and 2009.



However, the major turning point in the usd to cad rate started once the S&P500 touched its infamous 666 low of March 2009 which signalled the bottom of the market panic and the start of a dramatic V shaped recovery in the index.  It was at this point that the usd to cad rate resumed its downwards slide back towards parity which was duly achieved in April this year and, once again, it looked set to return to the 0.90 price handle.  However, as doubts about the economic recovery and fears that the sovereign debt in countries such as Greece, Spain & Portugal now threaten to undermine the banking system the usd to cad rate has reversed once again, albeit by a much smaller margin than we would expect given the level of panic and fear in the markets.  Indeed having turned higher the usd to cad rate looks set to resume its move lower, despite nervous and febrile markets and the main reason for this appear to be that  investors and traders are no longer automatically turning to the US dollar in these troubled times.  Instead traders and investors are exploring other options such as the Canadian dollar and pouring funds into Canadian bonds as recognition for the manner in which Canada has avoided the worst of this Great Recession and correction.