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CurrencyShares Canadian Dollar Trust ETF (FXC)

  • Tue, Feb. 24, 3:05 PM
    • "What we are trying to do is to manage the risks we face, not eliminate them," says Bank of Canada Governor Stephen Poloz in the bank's last public comments before its March 4 policy meeting.
    • He calls January's surprise cut an insurance policy against too-low inflation and the financial instability posed by high household debt. 'The sudden drop in global oil prices has increased both risks," he adds.
    • What Poloz didn't do at this speech was signal another rate cut is in the cards, and markets - pricing in a 75% chance of another cut - are scrambling.
    • The loonie (NYSEARCA:FXC) pops more than 100 pips higher, now up 0.5% on the session at $0.7997. The TSX Composite gives up its gains on the session, now lower by 0.25%.
    • Full speech
    | Tue, Feb. 24, 3:05 PM | Comment!
  • Fri, Feb. 6, 8:58 AM
    | Fri, Feb. 6, 8:58 AM | 1 Comment
  • Fri, Jan. 30, 8:42 AM
    • As backward-looking a report as you'll get, but nevertheless moving markets, Canadian GDP declined 0.2% in November vs. expectations for a flat read, and October's 0.3% gain.
    • The loonie (NYSEARCA:FXC) is taking the news hard, down nearly 1% vs. the greenback to $0.7846.
    | Fri, Jan. 30, 8:42 AM | 1 Comment
  • Thu, Jan. 29, 11:39 AM
    • The Canadian dollar (NYSEARCA:FXC) is seen sliding to $0.77 from its current $0.79, says CIBC, expecting another rate cut from the Bank of Canada. Markets have already priced this in, says Chief Economist Avery Shenfeld, but it's the chance of a third one which will keep them guessing.
    • Adding to pressure on the loonie, he says, will be an earlier-than-expected Fed rate hike in June. "Evidence from prior tightening episodes suggests that policymakers don't wait for wages to flash red before pulling the trigger on hikes."
    • "This is more than a rate-spread story," he adds, noting other commodities have also softened, and Canada's current account balance is going to take a far sharper dive into negative territory than previously expected.
    | Thu, Jan. 29, 11:39 AM | Comment!
  • Wed, Jan. 28, 9:04 AM
    | Wed, Jan. 28, 9:04 AM | Comment!
  • Mon, Jan. 26, 3:46 PM
    • Citing the knock-on effects from the drop in oil prices, TD Bank cuts its 2015 GDP growth forecast for Canada to 2% from a 2.3% prediction made last month. Alongside that estimate, TD expects the Bank of Canada to cut its benchmark rate another 25 basis points in March to 0.50%.
    • Previously: Unexpected rate cut for Canada (Jan. 21)
    • The bank says oil will average just $47 this year and $65 in 2016, down from $68 and $80 in the previous forecast.
    • Lower corporate profits will likely lead to a contraction in business investment and weaker employment growth relative to our December forecast,” says TD.
    | Mon, Jan. 26, 3:46 PM | 1 Comment
  • Wed, Jan. 21, 10:21 AM
    • The loonie (NYSEARCA:FXCplunges 1.3% to just $0.8150 after the Bank of Canada shocks markets by cutting its benchmark overnight rate by 25 basis points to 0.75%. It's the first move by the bank since September 2010, and it wasn't long ago markets were pricing in rate hikes.
    • The cut, of course, comes after the crash in the price oil, which the bank believes will be negative for both growth and underlying inflation.
    • BoC Governor Stephen Poloz has a press conference set for 11:15 ET.
    • The S&P/TSX Index is higher by 1.1%.
    | Wed, Jan. 21, 10:21 AM | 15 Comments
  • Wed, Jan. 14, 12:47 PM
    • "However things play out, we have the tools to respond," said Bank of Canada Deputy Governor TImothy Lane, wrapping up a speech yesterday. The speech dealt with the effect of the collapse in oil prices on Canada (pretty unequivocally negative if you ask the BoC), and that final line has analysts suggesting a rate cut could be on the agenda.
    • Forward markets are now pricing in a 4% chance of a rate cut sometime over the next year vs. an 8% chance of a hike just two days earlier.
    • Signs: December's jobs report was well weaker than expected with 4.3K jobs lost on top of November's 10.7K lost. And real estate sales in Calgary - one of the country's hottest housing markets - are down 34% Y/Y in January, while listings are up 22%.
    • Previously: Bank of Canada's Lane: Falling oil prices bad for Canada (Jan. 13)
    | Wed, Jan. 14, 12:47 PM | Comment!
  • Tue, Jan. 13, 3:06 PM
    • We see important risks to Canada’s economic outlook stemming from the recent decline in the price of oil and other commodities,” says Bank of Canada Deputy Governor Tim Lane. Not too concerned with cheap oil's effect on inflation, Lane says the bank is more interested in what oil's crash will mean for the country's growth, and hinted the BoC may have more to say on this matter after its Jan. 21 policy meeting.
    • The central bank's dour view is particularly interesting given that's it's more bearish than some private sector outlooks. RBC, for example, says the boost to consumer spending and exports can more than offset the drop in investment.
    • The loonie (NYSEARCA:FXC) is flat on the session, hovering near crisis-era lows vs. the greenback. The S&P/TSX Index is down 0.9%.
    | Tue, Jan. 13, 3:06 PM | 1 Comment
  • Fri, Jan. 9, 9:04 AM
    • Canada shed 4.3K jobs in December vs. expectations for a 15K gain and a loss of 10.7K in November. The unemployment rate held steady at 6.6%.
    • It's the first back-to-back job losses since mid-2009 when the economy was mired in a deep recession.
    • The loonie (NYSEARCA:FXC) takes out new multi-year lows following the number, now down 0.3% at $0.8424.
    • Previously: Unemployment rate in U.S. tumbles to 5.6% (Jan. 9)
    | Fri, Jan. 9, 9:04 AM | 9 Comments
  • Wed, Jan. 7, 7:55 AM
    • They couldn't have told us this 2000 pips ago? The weak stock performance of late from the Canadian banks is flashing a warning signal, says Morgan Stanley, meaning now is the time to sell the loonie (NYSEARCA:FXC).
    • To review: The Canadian dollar has been falling in more or less a straight line for more than a year. In the summer of 2012, it was buying $1.04 and this morning can purchase just over $0.84.
    | Wed, Jan. 7, 7:55 AM | 1 Comment
  • Tue, Jan. 6, 3:07 PM
    • That's the consensus coming from the Economic Club of Canada's annual forecast breakfast held earlier today. BMO's Doug Porter says investment in oil and gas accounts for roughly one-third of residential investment in Canada, and he's expecting a double-digit decline in that spending. He sees growth in Canada at about 2.2% this year vs. 3.1% in the U.S.
    • RBC's Craig Wright, however, sees lower oil prices as a slight net positive for Canada, as slowing investment in oil and gas is offset by stronger exports and boosted consumer spending power.
    • Wright may be on to something. Weaker again today, the loonie (FXC -0.5%) is back to its crisis-era lows.
    | Tue, Jan. 6, 3:07 PM | 1 Comment
  • Dec. 10, 2014, 4:16 PM
    • Another 2.5% decline today brings the S&P/TSE Composite into correction territory - off 12% from the 2014 highs and now barely in the green for the year.
    • The loonie (FXC -0.4%) gave up more ground to the dollar, and now buys just $0.87 - the lowest in 66 months.
    • "I think it's basically a sell-Canada mentality," says an analyst. "Whatever the rate of growth that was forecast, says two months ago, is going to be revised down."
    • EWC -2.65%
    • Previously: Double-whammy for Canadian banks (Dec. 10, 2014)
    | Dec. 10, 2014, 4:16 PM | Comment!
  • Dec. 5, 2014, 8:52 AM
    | Dec. 5, 2014, 8:52 AM | 1 Comment
  • Nov. 28, 2014, 9:00 AM
    • Canadian GDP grew at an annualized pace of 2.8% in Q3 vs. expectations for 2.1%. GDP grew 3.6% annualized in Q2.
    • The news was enough to send the slumping loonie higher for a few moments, but the currency has resumed its slide alongside the plummeting oil price. One loonie buys just $0.8757 vs. $0.8888 when we went to bed on Wednesday. FXC -1.2% premarket
    • The TSX Composite (NYSEARCA:EWCfell 0.8% yesterday as energy stocks tumbled the most in three years.
    • Previously: Energy names sharply lower as oil dives below $70
    | Nov. 28, 2014, 9:00 AM | Comment!
  • Nov. 18, 2014, 4:24 PM
    • "Consideration should be given to an inflation target that is above 2%," says Bank of Canada Deputy Governor Agathe Cole, taking note of a world of slower global growth and lower policy rates. Cote says the so-called neutral rate for Canada has fallen by 150 basis points since the financial crisis to between 3 and 4 percent.
    • Unless the inflation target is changed, says Cote, the probability of being constrained by the zero lower bound rises to 15% from 5%.
    • Inflation targets were first introduced in Canada in 1991and they are set every five years, with the next renewal coming in 2016. “The 2 percent target has been in place so long, it’s become very credible,” says BMO senior economist Robert Kavcic. "Any change may risk some of the bank’s credibility."
    • Also up for study, says Cote, is whether the BOC's core inflation measure is the best guide to price trends.
    • The loonie ETF: FXC
    | Nov. 18, 2014, 4:24 PM | Comment!
FXC vs. ETF Alternatives
FXC Description
CurrencyShares Canadian Dollar Trust is designed to track the price of the Canadian Dollar net of Trust expenses, which are expected to be paid from interest earned on the deposited Canadian Dollars.
See more details on sponsor's website
Country: Canada
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