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Time to own North American currencies – Canadian and American dollar will shine like never before
Sam Adelton
Feb. 3, 2007

Canadian currency right now is the best of all currencies. The trade balance, the balance of payment, reduction in budget deficit and oil revenues are some of the reason to buy and hold Canadian Dollar.

Canadian dollar right now is cheap. It is trading for 0.84 US Dollar. The recent downward move provides a remarkable opportunity to make a handsome profit. The Canadian Dollar correlates closely with the crude oil and natural gas markets. The currency at the presents says crude oil will fall below $50 a barrel. If that does not happen, Canadian dollar will bounce back to US Dollar 0.88 or more.

The US currency is also attractive. The purchasing power of US economy is the main source of booster for the US Dollar. Many analysts make mistakes between trade deficit and purchasing power of an economy and its currency. It is like PE ratio of the past versus the forward-looking future PE of a stock. The trade deficit is something of the past. The relative purchasing power of an economy is the PE of the future. The US currency is in a new bull market. At the present time however, there can be a shocking pull back before US Dollar explodes on the upside.


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