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Yesterday Goldman Sachs one of the largest U.S. banks encouraged their clients to buy Canadian Dollars!  So those of you that have held off purchasing a vehicle, you might have some great opportunities in the U.S shortly. 

 Article Below

 Buy Canada, Goldman Sachs says
TAVIA GRANT
Wednesday, December 17, 2008

Now is a good time to buy Canadian dollars because the country’s economic picture is less dire than in other Group of 10 nations, Goldman Sachs said Wednesday.

The report by the U.S.-based bank comes after the Canadian currency has tumbled 17 per cent against the U.S. dollar this year and has been little changed over the past month even as other currencies have strengthened.

“We think the Canadian dollar … has potential to play catch up” as the U.S. currency sees broad declines, Goldman said in a note to clients.

It listed three factors for its recommendation. First, the economic picture has “deteriorated less” in Canada than in most other G10 economies, because of relatively strong consumer spending.

As well, the Canadian government continues to run a surplus, “which provides some cushion against deteriorating global credit markets.”

And the banking system “appears to be in relatively good shape, in comparison with the rest of G10,” the report said.

Lower commodity prices will limit gains, but much of the weakness in commodity prices is already reflected in the current level of the currency, it said.

Other currency strategists agreed that the Canadian dollar has room to strengthen. “The U.S. dollar is in a bit of a freefall and Canada has not appreciated as much as the euro, sterling or yen so I think we are seeing a catch up,” said Firas Askari, head of currency trading at BMO Capital Markets.

“We are relatively better off in a couple of ways - our financial system is more sound, we don’t have the same kinds of subprime problems as in the U.S. and also the huge appreciation in the housing market that happened in Ireland or Spain didn’t happen here. So the bubble has less of a pop when it bursts.”

The Canadian dollar strengthened to 83.56 cents (U.S.) Wednesday from the previous day’s close of 83.21 cents. Mr. Askari said the currency could hit 87 cents in the weeks ahead.

© The Globe and Mail