Making money from foreign exchange.
The Highlander
money? If you understand money and the way it works, there is an
interesting opportunity available at this time.
The Canadian dollar, familiarly known as "The Loonie" because one side
of the coin features a loon, a northern diver bird, is "looking cheap"
considering how high oil prices have risen, according to separate
analyses Tuesday, with the author of one saying Canadians shouldn't be
surprised if the loonie climbs to the $1.10 US range this year.
"We conclude that appreciation of the Canadian dollar remains a
response waiting to happen," said Global Insight chief economist Dale
Orr, who in an interview suggested the currency could rise as high as
$1.10.
"As is sometimes the case in empirical economic relationships, the
lags in response in the market place take a little longer than
normal,' Orr said in his analysis. "With the price of oil recently
being revised upwards, and the other fundamental determinants of the
dollar either supporting appreciation or neutral, I believe the
Canadian dollar, in the par range to the U.S. dollar, is under-
valued."
"The loonie has ignored oil over $140 US, a telecom merger and
acquisition deal go-ahead, and a Bank of Canada move from dovish to
neutral," noted CIBC World Markets economist Avery Shenfeld in a
report, in which he says the "Canadian dollar is looking cheap."
"But a likely delay in (U.S.) Fed tightening until post-election opens
the door for a stronger Canadian dollar ahead," he said.
So what does this mean? It means that if you buy a Canadian dollar for
US $1, or whatever one costs in your local currency, at some time in
the near future, it should be worth around up to US$1.10, at which
point you can exchange them for your local currency and make a neat
profit at little or no risk to yourself after paying the usually
minimal bank fee for the transaction..
Peter Jason
"The Highlander" <mic...@shaw.ca> wrote in
message
news:a28484b5-8b79-4a79...@z66g2000hsc.googlegroups.com...
Taxes might kill the 10% profit.
The Highlander
> "The Highlander" <mich...@shaw.ca> wrote in
> messagenews:a28484b5-8b79-4a79...@z66g2000hsc.googlegroups.com...
What taxes? You just take the money to the bank and exchange it.