Now a CAD is equal to a USD but most products in US are still cheaper than in Canada. So if a currency tends to stick to its intrinsic value in a long term, the now undervalued USD will appreciate to reflect its real value. Am I right?
Trying to trade currencies based on relative PPP is not smart. I think the cross-border grocery store arbitrage working to restore the “intrinsic” value of the dollar is not nearly as strong as the effect of a weak-dollar policy in DC, a fiscal policy that thinks borrowing trillions of dollars to throw down the rat hole of a bunch of wars, and a Federal reserve that makes the biggest cut in interest rate in, uh, as long as I can remember in the face of the biggest inflation increase in 17 years. But I would like it if you would buy lots of American products so that we can use your Canadian dollars to finance all that crap.