As the Canadian Dollar continues to weaken against the US dollar, it's becoming apparent that many Canadians are looking towards other international markets for their income. The Canadian dollar has been weakening against the American dollar in recent days. Many who rely on a traditional source of income for their income have seen their income drop over the past two weeks due to this trend.
So what's going on with the Canadian dollar and how will it affect those who live outside of Canada? Well the Canadian Dollar has already dropped in relation to the US dollar. As this trend continues, the Canadian dollar will likely continue to weaken against the U.S. dollar.
The only way for the Canadian Dollar to outperform is if there are other major economic news events that happen in countries other than Canada. This isn't the case at the moment. This is mainly due to the weakness of the Canadian Dollar against the U.S. Dollar. There hasn't been a lot of news coming from Europe recently and therefore the impact of the weaker euro and UK pound is not being felt.
If you are someone who relies on a source of income other than the Canadian Dollar, you may want to make a point to look at investing in Euro. There has been some significant volatility on the Euro in the last couple of days.
With the Canadian Dollar weaker against the Euro, investors may find it more difficult to take advantage of European Economic news. It's possible that European economic news will cause the Euro to break through the psychological resistance level of $1.08.
When the Euro breaks through this resistance level it will be up by over 20% against the US Dollar. It may take a few weeks for the price to stabilize and stay there but at the moment, the Euro looks like it may outperform against the Dollar.
If you want to invest in the Euro, you'll need to understand that the strength of this currency tends to be short-lived. The stronger the Euro becomes against the US Dollar, the weaker the dollar against the Euro.
So the only way for the Canadian Dollar to outperform as the Canadian Dollar gets weaker is if there are major developments in European economies that affect European countries other than Canada. and the United States.
If there is substantial news in the European market then investors should certainly consider putting their money in Euro as the strong currency. It might take a while but it's worth the wait. Once the EURUSD has broken through the resistance levels, it will likely keep going strong and continue to outperform against the US Dollar.
There is also the possibility that the Canadian Dollar will remain under pressure in the short-term and will end the year below its target range. However, if this occurs the Canadian Dollar should start to rally towards its target level.
Investors need to remember that the Canadian Dollar is not a very liquid currency and it does have a higher rate of turnover. than some other currencies. Therefore, investors looking for a high yield investment should consider investing in the Euro.
Even though the Euro has been weaker against the US Dollar recently, it still offers many advantages to investors. If you look long term then this is probably not a bad option as long term, it will likely outperform against the US Dollar.
The Canadian Dollar might also outperform against the Dollar against the Euro in the future due to the weakness of the Euro against the U.S. Dollar. This means that investors are paying less for the same goods.