Reitmans Ord Shs V.RET

Canadian Dollar strength

[savyinvestor333]

Can dollar has strengthened almost 8% since Nov 1 and just around 4% in the last 2 weeks. So much for those stating the dollar was weakening. All the spring Inventory will be purchased at this exchange rate which should really help the margins.

[Torontojay]

Last year on Dec 31,2022, $1 Cad could purchase $0.74 USD. Fast forward 1 year later and that same $1 Cad could purchase $0.75 USD or a 1 cent improvement. Keep in mind that from Feb/March and August to December of this year that same $1 Cad could have purchased less than $0.74 USD which signals weakness.  From the moment they began interest rates in March 2022,  $ 1 Cad could have

[savyinvestor333]

As rates drop in the U.S. world commodity prices increase. Canada is a commodity powerhousesand  as such whenever the U.S. dollar weakens the Canadian dollar gains.if you believe they are getting rate cuts in the U.S. out dollar will stay strong. Keep an eye on copper and oil prices for direction.

[Torontojay]

It's not as simple as you pointed out. If Canada drops interest rates before the US, then our $ will weaken relative to the US ceteris paribus. Since Canada is more interest rate sensitive, if both Canada and the US lower rates simultaneously, Canada will suffer more in terms of the economy. Eventually, when money begins to flow into commodities, the dollar could regain much of its losses

[Torontojay]

The Canadian dollar has weakened since the end of December.  1 Cad can purchase 74 cents US. The Canadian dollar traded at around 79/80 cent US when the tightening cycle began in March of 2022 and has now declined to 74 cents.  Who is going to cut interest rates first in 2024? Which economy will do better in 2024? 

[TheCount11]

So who is going to cut interest rates first and when?  PS Brazil's central bank lowered its benchmark interest rate by 50 basis points in Dec to 11.75% -- its fourth consecutive rate cut.  I don't any investor that bought or sold Petrobras based on that. We had roughly 15 years of the US, Chinese, Japanese, EU playing games around currency / rates.  You did not need a

[savyinvestor333]

Right almost like 'What does that have to do with the price of tea in China'