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Expansion in Canada

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Problem:

A company is looking at Canada as a possible expansion market, I have been asked to do an analysis on the Canadian currency (the Canada dollar) and make predictions about its short- and long-term prospects relative to the U.S. dollar. The senior officer team wants me to use whatever economic and financial data you can find from good sources to help with your analysis. I have been asked to complete your analysis and present it in a PowerPoint presentation format to the senior management team at the next meeting.

Use economic data and financial data from solid sources such as the Federal Reserve, Bank of Canada, or Chicago Mercantile Exchange to evaluate the short- and long-term outlook of the Canadian dollar relative to the U.S. dollar. You can use spreadsheets, tables, and/or graphs to support your work.

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The response addresses the queries posted in 770 words.

//Before writing about the evaluation of the 'short- and long-term outlook' of the Canadian Dollar relative to the U.S. Dollar, it is essential to gain knowledge about the Canadian and the U.S. Dollar. One should know about the key aspects of both the currencies, in order to evaluate effectively.//

The Canadian and USA dollar, both are the frequently traded currencies. Canadian Dollar is not exotic like others, but limit access to the Canadian Dollar with prohibitively expensive bid/ask ratios, FX Trading offers spreads as low as too wide on the CAD. Furthermore, we extend our industry leading 400:1 leverage to clients wishing to trade with Canadian Dollar. Due to the regularity and stability between the American and Canadian economies, most of the traders feel they are better able to predict market movements To capitalize on the economic relationship between these two countries, clients will trade the USD/CAD [US Dollar/Canadian Dollar] currency pair. If a trader believes that the US Dollar will strengthen against the Canadian Dollar, they will buy the USD/CAD. If they believe that the US Dollar will ...

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Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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