Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Webster Groves who wrote (80865)	3/3/2007 4:21:31 PM
From: Kayaker	Read Replies (1) \| Respond to of 206326

"Because Canada is a large producer and net exporter of resource-based goods, the Canadian dollar is often referred to as a commodity-based currency. In other words, the value of the Canadian dollar is correlated to the strength of world commodity prices. When world commodity prices are high, then resource-based industries in Canada are more profitable, making the Canadian economy stronger and thus attracting investment and placing upward pressure on the Canadian dollar. When commodity prices fall, they undercut revenues for resource-based firms, eroding profits, dampening the domestic economy and pushing down the Canadian dollar. Commodity prices are largely determined by the strength of the global economy. A strong global economy tends to raise demand for -- and therefore prices of -- basic commodities, conversely, in times of economic weakness, demand for (and prices of) those commodities falter. Accordingly, in times of world economic strength, the Canadian dollar tends to rise; in times of weakness, the dollar tends to fall." dsp-psd.pwgsc.gc.ca