From Bloomberg:”Former Canadian Finance Minister John Manley said exporters may not benefit from a weaker currency because of a lack of consumer confidence in the U.S., Canada's main market.
``The lower dollar helps, but if the U.S. consumer is staying home, it doesn't really matter,'' Manley told reporters after a speech today in Ottawa. ``If they aren't buying anything it doesn't really matter what our exchange rate is.''
The Canadian currency is headed for its worst monthly drop since at least 1950, depreciating 17 percent since Sept. 30, as prices of exported commodities have declined. The Bank of Canada on Oct. 23 forecast ``sluggish'' economic growth over the next few quarters because of the U.S. recession and the global credit crisis.”RW: It seems like a bit of a stretch to say that lack of consumer confidence will offset this:
Canada’s exports will surely boom if the $USD maintained these levels. It’s not like we are buying mostly jewels from Canada – we are buying energy, car parts, tourism (skiing), or timber. Those goods are bound to sell well in spite of low consumer confidence, which consequently, was already low before the exchange rate surged.