Why is the Canadian Dollar, Euro and Pound Sterling dropping in value so fast?

Question

against the US dollar

Answer 1

well i know they are not doing as bad the US dollar

Answer 2

The dollar  after falling about 20 percent is rebounding because the trade balance has improved and is expected to get even better. This is partly because exports have increased  due to the lower dollar and  partly  because our slowing economy means  we are importing less. This is what economic theory predicts will happen  when a currency looses value. See j shaped cure at

http://en.wikipedia.org/wiki/J_curve

Answer 3

The economies of Canada, European Union, and UK have all recently reported bad economic news.  Their economies might be heading towards a recession.  

The US economy is also having a lot of problems.  But the US government seems to be more eager than other governments are to save the economy by any means it can.  And for this reason perhaps many investors expect USA to do better than other countries.  And they are transferring their money to USA.  Which raises the exchange rate of the US dollar relative to other currencies.

Investors always try to predict the future.  But since nobody knows the future.  It all ends up being a lot of guessing.  And this guessing can easily turn around and go in the opposite direction.