Canada’s Shaky Situation

Parliament Hill, Ottawa, Canada

Canada has been a little shaky lately:

CANADA FX DEBT-C$ rattled by risk aversion and election talk

* Canada Liberals will vote against government

* C$ hit intraday low after Liberal leader spoke

* Bonds stronger as stocks weaken; eye on Friday jobs data (Updates to close)

By Ka Yan Ng and Frank Pingue

TORONTO, Sept 1 (Reuters) – Canada’s dollar ended lower for the third straight session on Tuesday as economic concerns sent investors into safe havens like the U.S. greenback while the threat of a federal election also dealt the currency a blow.

The move out of the Canadian dollar intensified during the second half of the North American session after the country’s official opposition Liberal Party said it would not support the minority Conservative government. [ID:nN01496127]

The news makes a fourth election in just over five years seem very likely and quickly sent the Canadian dollar to its lowest level of the day when it touched C$1.1068 to the U.S. dollar, or 90.35 U.S. cents.

Political uncertainty tends to put pressure on a country’s currency.

“Generally speaking the rule of thumb is that the Canadian dollar does tend to be a little more volatile during elections simply because of some uncertainty over policy,” said Doug Porter, deputy chief economist at BMO Capital Markets.

“But I think it’s important to point out the fact that the U.S. dollar is on a bit of tear today in any event, even before this announcement, and I think it just really compounds what had already been an ugly backdrop for the Canadian dollar.”

The Canadian dollar had been pinned lower for most of the first half of the session as investors concerned that stock prices have run too far ahead of the economic recovery opted to pocket recent gains and unload riskier assets, which helped boost the greenback’s safe haven appeal.

The Canadian dollar closed at C$1.1041 to the U.S. dollar, or 90.57 U.S. cents, down from C$1.0950, or 91.32 U.S. cents, at Monday’s close.

That was well off C$1.0910 to the U.S. dollar, or 91.66 U.S. cents, a level it reached after data that showed the U.S. manufacturing sector grew in August, boosting the appeal of riskier assets…

Friday’s key jobs report is expected to show Canada shed 10,000 jobs in August, while the unemployment rate is pegged to rise to 8.7 percent. U.S. jobs data is also due on Friday. http://www.reuters.com/article/usDollarRpt/idUSN0149895820090901

Now perhaps I should add that the first news item I saw this morning indicated that the C$ was stable this morning. But there still are concerns in Canada about its dollar, economy, and upcoming election.

Despite having natural resources and many overseas international trading partners, because of its geographic location, its economic history, and what is recorded in biblical prophecy, Canada is tied in with the United States of America.

To a great degree, Canada is expected to share the fate of the USA, which ultimately will not be good. But the end will not occur before 2012.

Some articles of possibly related biblical interest may include:

Anglo – America in Prophecy & the Lost Tribes of Israel Are the Americans, Canadians, British, Scottish, Welsh, Australians, Anglo-Southern Africans, and New Zealanders descendants of Joseph? Where are the lost ten-tribes of Israel? Who are the lost tribes of Israel? Will God punish the U.S.A., Canada, United Kingdom, and other Anglo nations? Why might God allow them to be punished first? What will happen to the nation of Israel?
Who is the King of the North? Is there one? Do biblical and Roman Catholic prophecies point to the same leader? Should he be followed? Who will be the King of the North discussed in Daniel 11? Is a nuclear attack prophesied to happen to the English-speaking peoples of the United States, Great Britain, Canada, Australia, and New Zealand? When do the 1335 days, 1290 days, and 1260 days (the time, times, and half a time) of Daniel 12 begin? When does the Bible show that economic collapse will affect the United States?
End of Mayan Calendar 2012–Might 2012 Mean Something?There is a Mayan calendar prediction for change in 2012. 2012 changes were also centuries ago predicted by the Hopi Native Americans. Do Mayan/Hindu/Hopi/Buddhist/New Age/Nostradaumus prophecies have any value here? Why might Satan have inspired this date? Does the Dresden codex show destruction of the earth by flood? Can the great tribulation start before 2012?
Prophecies of Barack Obama? Are there biblical and non-biblical prophecies about Barack Obama. Did Nostradamus predict Barack Obama dealing with the Antichrist? This is the longest and most detailed of the articles here related to prophecy and Barack Obama.
Does God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? When does the six thousand years of human rule end?
Can the Great Tribulation Begin in 2009, 2010, or 2011? Can the Great Tribulation begin today? When is the earliest that the Great Tribulation can begin? What is the Day of the Lord?