Market Watch with Tom Waitt

October_6th_2010.mp3 Parity?    The Canadian Dollar value measured against major currencies affects the price of everyday purchases and investments. Recent commodity strength and U.S. Dollar weakness globally are pushing the Canadian Dollar toward parity to the American Dollar.   Canadian Dollar (click for larger picture) In 2010 the Canadian Dollar traded as high as 1.0066 U.S. dollars in April and as low as .9215 U.S. dollars one month latter in May. To realize the absolute value of this one month change consider a $25,000 U.S. car; it would cost $24,836 Canadian in April and as much as $27,130 Canadian one month latter in May, a difference of 9.2% which would also be your investment return on your money if you correctly anticipated the currency movement when investing. To highlight this point further the post war low on the Canadian dollar was .6179 in 2002 and reached a premium high against the U.S. of 1.1038 in 2007. The $25,000 U.S. car would have cost $40,460 in 2002 but on