You continue to talk the Canadian dollar down. Seeing as our trading partner is the United States, is it not more likely that the Canadian dollar goes
I get this question several times a month, we are not the United States. Canadian deficits will surge, both corporate and household debts are already in a dire state.… oh, and then there will be NEW HUGE Government debt!
This year there has been a bloodbath of currencies vs the USD. We would have been a lot worse off if we were not so closely connected to the US. For instance: The Russian Ruble is down 17%; the Turkish Lira down 18%; the New Zealand dollar down 12%; the Hungarian Forint etc. etc.
These currencies all go down for their own reasons based on their economic performance, there national debts, and the outlook for recovery. The US, for perhaps the wrong reason, will remain – in our view – the strongest currency. The IMF sees Canada drop by 6.5% in GDP (in our view it will be a lot worse) and therefore we see the dollar closer to .65 cents and by the way, Mr. Rosenberg sees it a lot lower.
For good measure: I have never liked the euro either. In 2018 we saw it being equal to the US by now (and we were wrong so far). But the euro is definitely also a currency I would stay away from. Ok, while I am at it – I do not like the pound either… Think: Which currency do you want to own?