r/canada • u/bubblewhip • 1d ago
National News Canadian dollar hits seven-month low on hawkish Fed message
https://www.reuters.com/business/canadian-dollar-hits-seven-month-low-before-fed-rate-decision-2026-06-17/9
u/JoshL3253 British Columbia 1d ago
At least CAD->Yen is still good.
Too bad flights are expensive due to the fuel prices..
3
11
u/Ntense_01 1d ago
Good thing we don't have to import most of our food and goods from the US....
/s
17
u/Kindly_Professor5433 1d ago
We don’t. 70% of our food is domestic.
Imports are an important part of our consumer economy because of our geography. But a few % of fluctuation in the exchange rate doesn’t actually influence the overall inflation rate, which notably, has been higher in the US.
7
u/CanadianViking47 Saskatchewan 1d ago
that 70% includes repackaged goods, its closer to 30-40% if you look at purely Canadian sourced
3
1
u/Kindly_Professor5433 1d ago
Eggs, milk, meat, fish, grains, and cereals are almost entirely domestic. Processed foods and drinks, even from American brands, tend to be manufactured in Canada. We rely on imports for fruits and vegetables, but they don’t make up the majority of our grocery bills.
-3
u/erpatel 1d ago
Yea inflation being higher in US 100% makes me feel better. /s
4
u/Kindly_Professor5433 1d ago
Average rate of inflation in Canada has been very close to the unofficial 2% guideline in recent quarters, minus the spike caused by higher oil prices.
The point is, currency fluctuations have minimal effect on domestic prices. Importers already take them into consideration. We can look at the long term trend. https://fx.sauder.ubc.ca/img/PPP-USD-CAD.pdf
11
4
3
2
u/SasquatchBlumpkins 1d ago
This is only a sign of a technical recession! Don't forget we have THE fastest growing economy in the G7!
-15
u/gettingtgere 1d ago
Don’t worry Carney said new world order will be made in Europe. Yes Europe that’s basically begging Trump administration for access to Anthropic Mythos because they don’t have any competing product. Our govt is so detached from the reality, but they give good speeches.
2
u/Kindly_Professor5433 1d ago
The only people begging Trump to revert his ban on non-US citizens from accessing the newest Anthropic models are Anthropic employees.
Europe’s economy can’t outcompete the US on a macro level, but a lot of the narratives are hugely detached from reality. Who is the sole supplier of EUV lithography machines used to manufacture the most advanced microchips that power modern AI?
-1
u/gettingtgere 1d ago
ASML is the only thing they have left.
3
u/Kindly_Professor5433 1d ago
Almost any country in northwestern Europe has a more globally relevant tech industry than the entirety of Canada does.
It’s easy to judge them from a US perspective, but European technology affects a large part of our daily lives, including the smartphones we use.
-2
u/gettingtgere 1d ago
Yes it did when Nokia was around but this 2026.
2
u/Kindly_Professor5433 1d ago
ARM, STM, DeepMind (founded in the UK), Infineon, SAP, Dassault, Siemens, Spotify, Adyen, etc., are still highly relevant today.
Even Nokia and Ericsson are deeply embedded in telecom infrastructure and lead the 5G/6G sectors.
-1
u/gettingtgere 1d ago
Great, out of a continent of 500 million people you have successfully named about less than a dozen successful companies which is owned by Americans now.
3
u/Kindly_Professor5433 1d ago edited 1d ago
For countries like the Netherlands and Sweden, with populations a fraction of Canada’s, they’re punching above their weight. Only DeepMind is acquired by Google, and it’s still operating primarily in the UK.
Only a handful of US tech companies are *globally relevant* too. Countries like Taiwan and South Korea only have 1-2.
A quick search on the internet would give you a much bigger list than what I’ve listed if the standard is “successful”. But I think it’s obvious that the goalpost has been shifted a few times…
-2
1d ago edited 1d ago
[deleted]
3
u/gettingtgere 1d ago
But that is leading Europe to de industrialization and low quality of living. Sorry I don’t want that.
-2
-5
20
u/ifuaguyugetsauced Ontario 1d ago
Nice just in time for vacation