Canadian dollar will weaken in the first half of 2008 Feb. 13/08

Forexmentor.com Forex Trading Price Action

What if oil-producing nations abandon the U.S. dollar, and price oil in euros to combat inflation? The Canadian dollar and gold could be major beneficiaries of such a move. This is because pricing oil in euros would deliver another blow to the already beleaguered greenback and gold, which is priced in U.S. dollars, would become much pricier. How would all of this affect Canada? Well, the loonie’s value would also rise, given the fact that Canada has the lion’s share of the world’s publicly-traded gold producers (in terms of market capitalization).

That said, it is entirely conceivable that the loonie will weaken during the first half of 2008 (translation: the USD/CAD pair will strengthen). So says Stefane Marion, an economist at National Bank Financial. This information courtesy David Berman, Globe and Mail, Feb. 11/08 – and brought to you by Peter R. Bain at www.forexmentor.com.

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