Canadians Should Be Happy Today!

[Beachboy]

Well boys and girls, I'm still betting on a stronger Peso (taking due note of the fact that financial markets are a suckers game). As much as I'd love a 50:1 Peso, I just can't see it.

Look at the short term bond rates. Philippine rate is 4%; US treasury 0.02%. All things equal, investments flow to the Philippines because of the higher yield, and this causes the Peso to get stronger.

Look at the S&P rating. In June S&P moved the Peso bond up to a BB+ from BB-. That's one notch below investment grade (and this comes at a time when S&P is slashing the ratings of Western currencies like mad) A European financial (Benoit Anne of Societe Generale) made this comment:

Looking forward, the major development ahead will be the move to investment grade, which would have a more significant market impact… The PHP has been the best performer in EM Asia – up 5 per cent YTD… The recent risk-on rally has pushed USD/PHP below its key 42 technical level and momentum trading might see the PHP retesting the 40.445 lows set in February 2008 (July 5,2012 Financial Times)

So we could see 40:1 instead of 50:1. :1 (103): It depends upon what the Philippine gov't wants -- strong PS hurts exports and creates local inflation. But to get to 50:1 might require a Chinese invasion of Palawan. Who knows? One things for sure, I can't do a damn thing about either way .. :cheersty:

RE: the Loonie (I love the nick name). Bob, I think your CAD is an oil currency (the correlation between the price of oil and the CAD is about .60). CAD has weakened lately because oil has declined. But I don't think oil will stay down for long, then CAD gets stronger. So maybe then you could see something in the upper 40's vs the Peso. Won't happen with USD. You might have to buy drinks at the bar. :cheersty: :cheersty:

[JJReyes]

I agree with the analysis by Beachboy. For both political and monetary reasons, the Bangko Sentral ng Pilipinas will keep the currency at a targeted exchange rate between PHP40 to PHP 45 to USD1.From time-to-time, the foreign exchange rate might be higher or lower, but the Bangko Sentral will intervene to keep it somewhere between P40 to P45.

[cebu rocks]

I agree the peso will be in the 45 to 1 USD but the Canadian will out preform the USD very soon due to no national debt . I,m not saying the CAN will rise as much as the USD will fall

[Curley]

I agree the peso will be in the 45 to 1 USD but the Canadian will out preform the USD very soon due to no national debt . I,m not saying the CAN will rise as much as the USD will fall

What's the betting that some politician in the not too distant future will alter the "no national debt" with some expensive crazy arsed scheme?

[i am bob]

The CDN $ has risen over the American $ so that is why we are making a better exchange than our American members! As long as the Loonie stays up in value, we will continue to get a better exchange. That was the whole idea of this post to start with! It does not matter what the US $ is valued at for this post... To argue that the exchange rate will never reach a certain point is moot if you are speaking US $.

My gawd but you are all to line up and get your peepees slapped!

:mocking:

[Ashanti]

Gibraltar is a British territory (an Isthmus) at the Southern tip of Spain, (Andalucia) as the crow flies, about 14 miles from Morocco

OT -

You know, i never understand the hypocrisy of Spain in giving UK a hard time over Gibraltar when the Ceuta and Melilla across the water in Morocco which are 2x Spanish enclaves right at the Moroccan heartland. Sorry, my British history is sadly lacking despite my husband dumping a thick british history book on me to read cover to cover :rolleyes: Perhaps Jackie being a resident in Gibraltar would be so kind to shed light in this puzzle for me???????????? pretty please ................ :)

[Jack Peterson]

Perhaps Jackie being a resident in Gibraltar would be so kind to shed light in this puzzle for me???????????? pretty please ................

:cheers: :unsure: Just getting over a couple of birthday Parties! I will catch up on things some time tomorrow, I could talk for ages about the little 4.5sqkm piece of Rock,(Gibraltar) It houses 30.000 Inhabitants, who have been a pain in the Spanish Governments back side, for over 300 years. the Llanitos are very dear to me So if it were boring sorry, maybe in the end I may have to Start a new Topic. ASHANTI! I will answer your remark and shed what light I can for you, maybe then if there is some Interest I will, maybe. Move it on to a Topic on it's own. Thoughts please?? After all it is over 11.000k away but to me and I hope, to other Brits, an Important piece of Historical Interest, that is some times not totally Understood. :)

:tiphat:

[Ashanti]

That would be nice jack ............... as it really puzzles me my why the hypocrisy or is there something that Im missing in history ............ And why the mainland Brits take it in the chin when the Spanish wag their tail about Gibraltar ...................... :unsure: