Canadian Dollar At Par

It looks like the Canadian dollar (or the loonie as it is known to us in
the Great White North) is back at par with the US greenback. The party
was good while it lasted, but the fundamentals clearly indicated that
forces other than interest rates and state of the economy were at play.
There all sorts of theories as to why the loonie had appreciated so much
in the recent past. These theories ranged from the loonie being a petro
currency to the dark mysterious forces of hedge funds speculation. Other
reasons thrown out there include strong commodity prices in general and
the closing significant acquisitions of Canadian companies. Many suspect
it is a combination of all these factors. Canadian consumers have been
benefiting, as can be seen in the long lineups across the Canadian-US
borders. Shoppers have come back with a bounty of cheap goods and
stories of long delays. Domestic retailers are clearing hurting from the
influx of Canadian shoppers into the US and will be slashing prices to
compensate. Survival of the fittest will be tested this holiday season
and beyond.