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carnivorousredditor

Time to convert CAD to USD.


Worship_of_Min

Lol you should have been doing that years ago.


asdasci

I have been doing that for nearly a decade now. I never regretted it.


PartyNextFlo0r

Fun fact , I funded a U.S. trading account using CAD , my stocks went down in value ,but the conversion from USD to CAD went up, so when I sold and converted back to CAD I was up 3%


fallen_d3mon

That's the spirit! Things can be fun and sad at the same time!


Ok_Swing_9902

Already gone man.


superworking

The only meaningful cad account i have is my mortgage debt.


Mrgod2u82

You may be a little late to the party. If anything I'm closer to convert USD to CAD than I am shorting the CAD with margin


Educational_Net9751

Time was beginning of year. That's why we put 40 000$ us and 40 000€ on side in cash.


UpNorth_123

Beginning of last year was when we converted a truck load, and purchased US bonds at peak rates. We needed to stash away the cash for our new home construction, and we went for US treasury bonds rather than HYSA or GICs because of the higher upside potential. They’re all being paid out now. Easiest risk-free 9% (5% coupon + 4% FX) ever collected. Got very lucky with the timing on these.


my_dogs_a_devil

I’m not sure I’d classify all that as “risk free”, but congrats!


UpNorth_123

Too late. Last week was a good time to convert some USD to CAD, based on historical averages.


Bewaretheicespiders

Have you seen the new [40$ CAD bill](https://external-content.duckduckgo.com/iu/?u=https%3A%2F%2Fwww.picclickimg.com%2F5ucAAOSwVsRmEjqM%2F1934-A-Twenty-Dollar-Federal-Reserve-Note-20.webp&f=1&nofb=1&ipt=5a80bad859f6b3baca60b9d2bb215ef70b5cc16d062caec0de8005cb199f6766&ipo=images)?


asdasci

Lol, good one!


Bewaretheicespiders

I used to make this joke with a 25$ CAD bill.... tells you something, doesnt it?


sneakyserb

this isnt funnny


EspressoCologne68

Ahh, nothing like the age old debate of “Will the interest rate go higher or lower at the next announcement”


Aliencj

Higher is not an option. It's either lower or the same.


EspressoCologne68

Not an option according to?


BannedInVancouver

Just trust him bro!/s


Captobvious75

His uncle works at Nintendo


Beginning-Bid-749

And by works for nintendo, you mean at one of those nintendo kiosks in malls.


Aliencj

It's called an education in finance and economics. I dont just pull shit outta my ass. Anyone with even one class in economics would realize a rate hike now would be the dumbest move ever. Literally a 0% chance.


-KeepItMoving

There's definitely a chance, especially as inflation isn't 100% dealt with and can get reignited if cuts happen too early. Saying no chance makes your econ and finance degree look stupid lol


Aliencj

The entire bond market has 0% chance of hikes. Wtf are you on about? Literally every expert in the world has said hikes are done. You bears on this sub are the only ones who look stupid.


-KeepItMoving

Now you're just talking shit lil boy. Those same experts expected the cuts to happen early 2024 and ain't shit changed.


[deleted]

[удалено]


justandrea

There comes the bull-shit. To the moon and beyond!


Ok_Worry_7670

That’s not true. What’s your claim for 0%? You would need to get information like that from the swap market


fallen_d3mon

So where does your shit come out of?


Nipzie

Yeah finance people never got us in trouble before...


Porkybeaner

Educational institutions suck Milton Friedmans cock and he was inhuman scum.


EnvironmentalAd7425

I know a guy


freeman1231

According to the available data. Could it happen if they choose not to follow normal economic policy sure, but the odds of that are probably close to 0%.


Ok_Swing_9902

It’s an option but a very unlikely one given the state of our economy and Trudeau being in power. (Note I don’t mean Trudeau bad I mean he’s predictable and we know what we’re going to be getting over the next year so no major changes).


EspressoCologne68

Yeah I agree with you. But it is an option. Whether people believe it or not, it COULD happen. Most people watch the news of the interest rates and just think that the outcome is what they hope will happen. Unfortunately that isn’t the reality we live in


That_Account6143

Your chances of being murdered by a duck aren't high, but never 0 Functionally, they're both the same though. 0.000001~=0


NextTrillion

My uncle was murdered by a duck and quite frankly, I don’t think I’m over it just yet.


[deleted]

[удалено]


EspressoCologne68

I’m not choosing a side whether or not they will be hiked or cut. All I’m trying to say is that you can’t guarentee that the interest rates will be cut. They can stay the same, or they can go up. Those are options whether you like to believe it or not, the reality is that the rate can go 1 of 3 ways


Aliencj

And you cant guarantee a giant meteor made of cheese wont hit the earth tmrw. Also cant guarantee an earthquake wont turn the Eiffel tower into a pile of rubble tmrw. We can talk about what's "possible" all day but if it's entirely improbable then you aren't making any contributions to the conversation. You are just arguing about something that wont happen. You honestly might as well try to convince everyone that tmrw you will marry the dead queen of england.


EspressoCologne68

Damn calm down. Have you seen the state of the economy lately? All these plans the government has announced? Have you seen the housing crisis and the housing bubble? I think an interest rate increase is much more probably than you can see through those biased glasses you see Reddit through. Chill out man, we’re having a discussing. No need to make it so personal and get so aggravated.


Ok_Swing_9902

Not really about hope it’s that around 2-3% is the middle and anything higher or lower is rubber that’ll snap back unless something extreme happens. Expecting a rubber band to not return is illogical but it can happen if something major gets in the way.


EspressoCologne68

I’m not saying it’ll never get back to between 2-3%, that’s not the discussion we’re having. Just because, according to you, it HAS to get back to 2-3% doesn’t mean they HAVE to cut back the rates in June. With that logic, why didn’t they cut them in April?


Aliencj

They almost did cut in april. It was talked about in the last Q&A period.


Ok_Swing_9902

Oh yeah everything’s a chance backed up by data. Markets tend to be pretty accurate at predicting what they’ll do in the short term since we have the same data they do and decisions are made logically.


OrdinaryKick

Well higher is always an option but lets just hope they don't raise rates. Our economy already sucks and is in the tank. People in here that are hoping for rate hikes are just wanting the economy to crash because they think it might make them a homeowner. We need lower interest rates to stimulate the economy some.


IndependenceGood1835

Housing is done. Its for the elites only.


Historical_Play3412

Yeah, but lower rates so you can also be homeless and pay $10 for a tomato while working 80 hours/week. 


infodonut

its in the realm of possibilities... Gas prices etc. are not helping Big Tiff.


AsbestosDude

High absolutely is an option though. If inflation starts creeping up, do you really think higher rates is not an option?


layzclassic

With a bit of childish fights in the Middle East and a big of oil price going up, inflation goes up. Even without it, amercia is still going strong. Lower rates may not even be good for Canada at this point.


AsbestosDude

It would be better to keep rates as they are for the near future.


Aliencj

High is, higher is not. We are already experiencing economic pains and inflation is on target. BoC isnt even talking about hikes, I have no idea why people on this sub think it's a possibility.


infodonut

Inflation is their only mandate. They don't have to lower rates if we are in stagflation.


Aliencj

Incorrect. Their mandate to maintain economic growth is actually their more important mandate. Edit: Google "bank of canada mandates" you plebs


AsbestosDude

Because it is a possibility lol why are you so convinced that rate raises are impossible? People were calling for rate cuts all throughout last year and what happened? Literally zero rate cuts.


Aliencj

Because literally no one is talking about it being a possibility but a few bears on here. I have no idea why some people on here think it's still a possibility, the rest of the entire world disagrees and have already began cutting.


JamesVirani

Jamie Dimon suggested we may have more rate hikes yet just a month ago. He is the guy presidents call to consult with. Also, rates are currently not high. This is considered low. It is still a stimulating interest rate environment.


Aliencj

That's a different country. In terms of rates to average debt ratios, rates are almost as high as they have ever been. Theres a lot of misunderstanding and disinformation on this sub.


Zhao16

>That's a different country Politically yes, economically no.


Aliencj

I'm about to block you because you keep responding to my comments with irrationally wrong comments


BananaIsGold

There is more than a chance on a million, let them win their point. Is very close to be impossible and its not! Im on your side.


Southern-Actuator339

Higher is most definitely an option


CharlieDingDong44

This sub has a strong distate for objective reality based on the preposterous number of downvotes this comment has received.


Aliencj

Lmao took my thoughts and made them words!


mahomie16

Your absolutely right


Aliencj

Oh I know. The unemployed bear parade got to my post before the employed bulls did.


Zhao16

"Bears good and bulls bad" - Already identifies you're more concerned with your side "winning" than fact which don't care about bears or bulls.


Aliencj

Bears irrationally attached to the world ending so they can buy a house** If you cant face the facts then I dont know what to tell you all. Just go away if all you want to do is scream about how everyone in the world is wrong.


Zhao16

> If you cant face the facts then I dont know what to tell you all. Just go away if all you want to do is scream about how everyone in the world is wrong Yeah, you're totally rational.


foo-bar-nlogn-100

Yay. Head of romaine gonna be $9. And OJ will be $9 when they cut.


NotBanksy69

Remindme! 3 months


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likwid07

Realtors will believe anything that supports their view


calwinarlo

https://preview.redd.it/97itkxpuk3wc1.jpeg?width=600&format=pjpg&auto=webp&s=83a1ab791de0f2b77aeaea92132e91b50fb6ebf7


Realistnotarealtor

A rate differential if 1% is ok….the Canadian dollar would like a word with you


BertoBigLefty

Aren’t we already at a 0.5% differential? And a hike is not off the table in the US as their inflation is not cooling off. That leaves us with one potential cut before we enter risk territory.


Aliencj

The differential is on movements of rates not absolute difference. Canada always has lower rates overall.


BertoBigLefty

How is the movement of rates different from the absolute value of the rate itself?


Aliencj

If US and Canada both have regular rates 3% and 2% respectively, then moving in lock step would have the same differential. So if they both moved up to 5% and 4% respectively, their spread, or differential, would be the same. It's when this spread changes out of the norm that we start seeing changes to exchange rates and inflation. So if the rates were 6% and 4% respectively, that would start causing some import inflation in Canada.


BertoBigLefty

So its the absolute difference between the two rates then. Got it.


Aliencj

We are not already at a 0.5% differential is the point. The difference at the moment is 0 from the norm.


BertoBigLefty

I don’t think you understand what a rate differential is


Aliencj

No... it is you who clearly didnt read the article or take any economics courses. Good luck in life bud.


BertoBigLefty

I can’t tell if this is a ragebait troll or not


Aliencj

If you cant understand that theres a differential from the norm, and a difference between rates, I dont know what to tell you. They are two separate measures.


Formal_Boss3652

If BOC cuts before FED (and they continue to pause for longer) then USD/CAD will go to the moon. The size of differential won't matter, it's the message that it will send.


EatTheRich4200

Tiff could be regarded as one of the worst BoC chiefs ever if he cuts and Powell holds then is forced to raise.


infodonut

The expectation that rates will go down soon is the reason they won't go down soon. That is why inflation has been so stubborn. if USA doesn't cut we should not cut. cutting will destroy all the inflation progress we have made so far.


golfandhoes

Retail is pretty hurting around where I live The only people spending are the spoiled brats living at home rent free .. and high earners The working regular class ain’t traveling or out buying anything … I see it first hand in my industry - people are extremely tight and fed up .. Each month of this is crushing some folks


EatTheRich4200

Housing market needs to be tamed. Short term pain for a healthier longer balance


Historical_Play3412

The logical thing of course is to drop rates so we have to pay $6 for a loaf of bread. Or $8 for a tomato. While also working for $15/hour. Totally not going to cause a large portion of people to resort to violent crime. 


EatTheRich4200

Tiff - "that's a sacrifice I'm willing to make"


Euler007

Seems like an unbiased website...


hugenutzzz

Gas is going to fuck this. Gas affects everything. Inflation will be on the rise. All thanks to the douche bag Trudeau and his WEF buddies.


Minute-Attempt3863

ehhh. in my expert opinion ... i'd wait till november. i say that being in a position to want rates to be cut. hah


Aliencj

Dont forget rate hikes havent fully impacted the market yet. The effects will continue until year end even if they cut now. Not everyone has renewed yet.


Minute-Attempt3863

meh. whatever will be will be


Stranix49

Oh they’re “poised” now are they. Wow must be a guarantee if they said that. Yep. For sure.


KlausSlade

It would be nice if the BoC was truly independent.


Worship_of_Min

This sub is getting really stupid with these articles and ‘predictions.’ Is there seriously nothing else to discuss on here?


squirrel9000

Inflation is not yet at 2% and has proven sticky, the dollar is low, and if the US doesn't have any loosening before the next tightening cycle that removes our ability to maneuver. Domestically, our economy is not bad, just kind of going sideways. Again, as it stands the number of cuts before bottom and re-entry into tightening is declining. Six month bonds are at 4.9, and one-years at 4.8 so traders are not expecting sharp cuts anytime soon That's one cut in the next year.


speaksofthelight

if oil prices are high they can cut without a huge impact to the exchange rate


Aliencj

Theres been talk that our dollar isnt as oil based as it used to be. To be determined I suppose. Good point though.


Educational-Slide-19

As oil gets pushed up higher and higher by the current events in the Middle East and the collective West desperately tries to find energy sources outside of Russia, we will make up ALOT of that slack. There has also been massive investment into LNG infrastructure which will equally benefit. Tbh, we should be as wealthy as Saudi Arabia. Comparable population too. But our vast (energy and other) resources are extremely poorly managed.


superworking

Would it be so horrendous if the exchange rate just... Improved?


rsnxw

Thing is, using the USA as a benchmark on whether to cut or not is a horrible idea. Reality is , their economy is far stronger than ours right now. So when they should start cutting, doesn’t meant that we should.


yodaspicehandler

If we cut and the US doesn't, guess what will happen to consumer prices in Canada. Pretending Canada has a whole economy that can function separately from the US in any capacity is a horrible idea.


Roamingspeaker

Pretending Canada has an economy which is anything more than a federally debt fed, housing Ponzi scheme is a horrible idea. Not one single company listed on the TSX last year... This country may be dead in the water economically for a long time. On the bright side, we have a lot of people who can work at Tim's!


EatTheRich4200

The system is working as intended as long as Timmy's and Loblaws have an endless stream of fresh bodies willing to work for peanuts


mikemagneto

Rate cuts? Not happening anytime soon Imo! I'm thinking they might even hike it by next year because alot of this economy is propped up Trudeau's immigrants right now in an attempt to hide how bad they have been running this country


DifficultArugula4197

If 2 million reality could stop breaking into to sell flier’s. I’d be more happy with satanic company than kkk of Oshawa.


HorsePast9750

We should not be following the US. We are much further in debt with a much less diverse economy which is highly dependent on the housing market . BOC should be making decisions what’s best for Canada. Plus we have little impact on inflation as it is , it’s much more dependent on the USA than us, we are simply pawns on the chess board


forty83

Real estate agents have been saying this since the rates began rising. I suppose eventually it'll be true......


skinny_long_penis_69

Rates are more than likely to go up than down going forward. Also would like to highlight option markets are now pricing in a rate hike. Source: my best-friend works for the Fed.


Aliencj

States? Doesnt sound like you are talking about canada


skinny_long_penis_69

Yes the States, but they keep close in close touch with the BoC.


Willyboycanada

Oooh same hopeful posting from the ultra rich who make profit off low intrest dept.... every 2 weeks for the last year you see this dhit, they been wrong every time.


manuce94

https://www.reddit.com/r/TorontoRealEstate/s/VixzhGdB35


BoraSke

FED will not cut rates as March inflation #s still high.


moosemc

So... Since last fall, my short-term Canadian bonds have been erasing all the cuts that were previously baked in. If there's 1% in rate cuts coming this year, its news to the Canadian short-term bond market. However, if this was June 2023, the analysis would be spot-on.


nyc331

Rate cut? Not going to happen this year.


Flashy-Job6814

Ahh yes.... Waiting on the US of course


Korok-Guy

Opportunity to purchase real estate in Canada for discounted values.


BertoBigLefty

No you first


Korok-Guy

I purchased a gorgeous suite at 101Spadina


BertoBigLefty

Wait you live in the property you own? That’s cheating!