Canadian Dollar Up More Than a Cent

My hometown London Free Press reports that:

"The Canadian dollar rose more than a penny against the U.S. dollar yesterday after the United States reported a worse than expected monthly trade deficit while Canada had a near-record trade surplus. The loonie closed up 1.21 cents at 83.31 cents US after trading as high as 83.70 cents after the trade reports were released."

Given that the U.S. trade deficit doesn't look like it's going to get any smaller any time soon, expect the Canadian Dollar to remain strong. Expecting the Canadian Dollar to reach parity with the Greenback is likely asking too much of the looney.

Articles on Exchange Rates
1. A Beginner's Guide to Exchange Rates and the Foreign Exchange Market
2. Exchange Rates: What to Use as the Base?
3. Is the Canadian Dollar Going Up in Value, or is the U.S. Dollar Going Down?
4. The Canadian Exchange Rate
5. Exchange Rates and Commodity Prices

Articles on the Trade Deficit
1. The Trade Deficit and Exchange Rates
2. Trade Deficit & Exchange Rates Response