December 12, 2006

MIDAS TOUCHED:

Canadian dollar hits eight-month low (TAVIA GRANT, 12/12/06, Globe and Mail)

The Canadian dollar tumbled to an eight-month low Tuesday after a report yesterday showed productivity unexpectedly fell for the second straight quarter.

Lower prices for some commodities — including nickel, zinc and aluminum — also weighed on the loonie.


Trade Deficit Falls As Oil Prices Drop (Martin Crutsinger, 12/12/06, AP)
The Commerce Department reported Tuesday that the deficit fell to $58.9 billion in October, down 8.4 percent from September. The percentage drop was the biggest since December 2001. It pushed the monthly deficit down to the lowest level since August 2005. The total was far lower than economists had been expecting and was substantially below the all-time monthly high of $68.5 billion in August.

The sharp decline reflected a record drop in oil prices which sent America's foreign oil bill down by 17.1 percent to $21.8 billion, the lowest monthly oil total since July 2005.
Never a good idea to tie your future to higher commodities prices.

Posted by Orrin Judd at December 12, 2006 12:00 AM
Comments

The Canadian Dollar is a mystery to me. Here's a similar type US economy, but with higher taxes and almost non existent service (but everyone's so nice!), yet their dollar is cheaper than ours? I could see if they pegged their dollar to ours on an even exchange, or even higher (like the Euro), but cheaper, I don't get.

Posted by: KRS at December 12, 2006 11:53 PM
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