Another example of a Type Two force, this time in the opposite direction for the Canadian dollar, is the adjustment of the U.S. dollar against most major currencies, reflecting concerns about the U.S. current account deficit. I'd like to elaborate on this as I discuss the recent appreciation of the Canadian dollar.
Global price increases One of the determining tendencies of the world economy currently is the growing prices of food, oil and other raw materials. What we know for sure is that the prices of these products are increasing relative to that of other products and services that enter into international trade.