There has been a lot of talk of the soaring Canadian currency lately. It's been hovering around $1.00USD for the past few days. When this happened, I was up north visiting some of Melissas family for a funeral.

There were people speculating that this will be the catalyst for a "North American" currency and that the Americans would be "dumb" to not do something like this as it will give them a leg up with competing with Europe.

Granted this is a view that is only shared by a few of the people I spoke with, however, I do feel like I should comment publicly on this.

I am not a business major, currency trader, and don't actively participate in stock trading. This is just my opinion.

The US' major exports go to Canada 22.2%, Mexico 12.9%, Japan 5.8%, China 5.3%, UK 4.4%. None of these countries use the Euro. Since almost a quarter of exports go to Canada, it would not be in Canadas interest to agree to a unified currency. As long as the dollar rises, goods from the US will be cheaper and cheaper.

One of the advantages of the lower US dollar would be tourism. I know of one person who has planned a major trip to the states partly based on the lower US dollar. The US dollar is also lower compared to the British Pound and the Euro, a good incentive for overseas travelers to visit the USA.

Canadians will also benefit from lower prices in the states, especially with lower sales taxes, and take advantage of the currency parity to save a few bucks.

How high will it go? Some say $1.05. In any case, it doesn't really affect me directly at all since I don't do a lot of travel to the states. My e-bay purchases might be cheaper now though.