Please click through the graph to see a larger version. The data for this graph came from the Federal Reserve:
I was curious how the euro and the Canadian dollar fared against the U.S. dollar over the past decade. As we see, the euro strengthened against the U.S. dollar in the earlier part of the decade and has weakened during recent years. The Canadian dollar has tended toward parity with the U.S. dollar.
Given the immense problems in Europe, I would not be surprised to see continued weakness in the euro. Perhaps it will fall to parity. And the Canadian dollar is likely limited to parity or slightly stronger. I say limited because if the Canadian dollar were to become much stronger, vast portions of the Canadian economy become uneconomic against that of our southern neighbor.
Don't take my musing as rigorous analysis. I was simply curious as how the euro and Canadian dollar have moved relative to the U.S. dollar over the past decade. With all the Risk On and Risk Off and central banks interventions and various political interference, it's hard to provide rigorous analysis.