John Shrall Posted January 30, 2015 Report Share Posted January 30, 2015 Looking at currencies this morning 1/31 I see both the Peso and Canadian dollar fell overnight by over 1%. The dollar to peso crossed 15 having bumped up against it a couple of weeks ago. No news that I have found yet but if you look at the hourly trading charts you'll see both currencies dropped like a rock about the same time last night. Anyone see reports that might explain the strength, assuming that's what it is? Link to comment Share on other sites More sharing options...
John Shrall Posted January 30, 2015 Author Report Share Posted January 30, 2015 It just seems odd that the CDN and MXN both dropped about the same percentage and if you can believe the charts, about the same time overnight. But then again the Latin American and Mexican ETFs ILF/EWW are both down substantially this morning. Link to comment Share on other sites More sharing options...
Fred Habacht Posted January 30, 2015 Report Share Posted January 30, 2015 The Mexican central bank has thrown 200 million us dollars at the peso to slow it's drop...last night they only threw 100 million...note that the peso has already dropped back below 15 to 1 on the dollar. Best time to buy pesos is early in the am before the currency markets open....maybe! Link to comment Share on other sites More sharing options...
pappysmarket Posted January 30, 2015 Report Share Posted January 30, 2015 15.01 at 10:22 Loonie 11.8 Link to comment Share on other sites More sharing options...
snowyco Posted January 30, 2015 Report Share Posted January 30, 2015 The talking heads on the finance programs are discussing how Canada’s dollar just fell for a 10th week. This is the longest losing streak since 2000. The latest report on the Canadian economy unexpectedly shrank from Canada's official prior growth predictions, which has bolstered speculation that Canada's central bank will cut interest rates again. The Canadian economy reportedly shrank the most in 11 months, with only weak 1.9 percent growth in November (from last year), versus the 2.1 percent prior govt. forecast, and versus the Canadian govt's Oct. projection of 2.3 percent in October. Canadian projections continue to suffer as the Bank of Canada lowered its forecast 2015 economic growth to 2.1 percent, down from their 2.4 percent previous forecast. Oil prices continue to batter the Canadian govt's economic choices to back big oil plays.228 million barrels of Mexican oil prices for all of 2015 were locked in at $76 a barrel back in November, so for now, Mexico is NOT losing big money in the current oil price game of chicken. The 8 financial institutions who sighned the $76 hedge contracts with Mexico are taking a beating. The MXN pesos coincidental dropping on the bad news from Canada may just be the common reaction of currency speculators to temporarily drop MXN values whenever there are bad economic reports from the USA or Canada - on the old assumption that Mexico's economy is so heavily tied to the USA & Canada that any problems NOB must somehow translate to equal % problems SOB. With Mexico's growing manufacturing output (esp in cars), combined with their good hedge contracts guaranteeing $76 a barrel payments for their oil, point to currency traders/speculators initial reactions possibly being wrong. This could explain why the Loonie continues to stay weak this morning, as the MXN peso strengthens to $14.92 to the USD. ? Link to comment Share on other sites More sharing options...
rogerm Posted January 30, 2015 Report Share Posted January 30, 2015 The MXN peso strengthens to 14.92 to the USD. I am all for it to strengthen some more, maybe 20.00 to 1 make it easy to figure. Link to comment Share on other sites More sharing options...
snowyco Posted January 30, 2015 Report Share Posted January 30, 2015 Yes, BigD: When MXN peso to USD exchange rates fall from $15.05 MXN: $1 USD down to $14.9:$1 USD, the MXN peso has strengthened, by 1%. John asked for reports of why the MXN peso and Loonie had weakened last night, which you can read about in the earlier post on the MXN peso first weakening, and then strengthening. It seems counter-intuitive to simple logic, but higher MXN:USD exchange rates ( 15.05: 1 ) mean a weaker peso.while lower MXN:USD exchange rates ( 14.9: 1 ) mean a 1% stronger peso. Link to comment Share on other sites More sharing options...
lakeside7 Posted January 30, 2015 Report Share Posted January 30, 2015 Well I guess the Canadians are getting screwed (again) at Lakeside having to pay more (27%) as rentals are in USD or house purchase also in USD Link to comment Share on other sites More sharing options...
El Saltos Posted January 31, 2015 Report Share Posted January 31, 2015 There's no screwing involved. Link to comment Share on other sites More sharing options...
pappysmarket Posted January 31, 2015 Report Share Posted January 31, 2015 Yes, why would you consider it screwing when one person's national currency declines in relation to another's? Just rent/buy from a Canadian as surely their rental/sales rates are expressed in Canadian dollars, no? If not, why not, are they trying to screw their fellow citizens? Link to comment Share on other sites More sharing options...
Xena Posted January 31, 2015 Report Share Posted January 31, 2015 My lease states rent amount in pesos which I pay in pesos, the currency of the country in which I am living. Link to comment Share on other sites More sharing options...
pappysmarket Posted January 31, 2015 Report Share Posted January 31, 2015 My lease states rent amount in pesos which I pay in pesos, the currency of the country in which I am living. There you go, end of problem. Link to comment Share on other sites More sharing options...
tomgates Posted February 7, 2015 Report Share Posted February 7, 2015 The U.S. dollar is appreciating on the expiration of QE and anticipation of FED rate hikes. Also Europe is just beginning QE putting pressure on their currencies. The pressure on Canada is clearly oil related. Mexico is just caught in the middle of the larger trends. Link to comment Share on other sites More sharing options...
sue Posted February 7, 2015 Report Share Posted February 7, 2015 If you follow the ups and downs of the Canadian dollar it rises and falls with the rise and fall of oil. I do not know why the dollar is so dependant on the oil prices but it is. Link to comment Share on other sites More sharing options...
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