By Ralph Shell: Once again the Canadian dollar is firming versus the U.S. dollar, challenging parity with the greenback. Looking at the chart there is a distinct channel starting from June 4th when the USD made a high of 1.0445 versus the loonie. From initiation of the channel we have a succession of Canadian dollar highs followed by spikes of USD strength. Clearly there is a pattern of Canadian dollar strength, but once again we have approached parity, where there should to be resistance.

The lengthy US/Canadian border and the North American free trade agreement has encouraged big trade between the two countries. According to a recent Fact Sheet from the US State Department, there is daily trade of $1.6B. Each day 300,000 people cross the Canadian/US border. The two countries supply electricity to each other, sharing a huge electrical grid. The US buys 70% of Canadian exports. The US is the largest


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