LightnRod

Surging Loonie May Force Canada Rate Hike Sooner Than Planned

If Canada will be raising interest rates, that should give bit more strength to the Cdn. $

As well, I think Canada's fiscal policies are lot stronger and smarter than that country that exists south of its borders.

Canada's dollar was way over sold in March. It was due to come back. I'm bit surprised as to how long it has taken.

I was shocked, shocked, by some Cdn investment managers going long the US $ in March. What were they thinking?

The fundamentals are there for Canada; the US has a lot more structural problems IMMHO.

To an extent Canada is tied to the US in the manufacturing area, however, Canada has the rich resources and growth capacity.

Given recent strength and action, Cdn dollar could be over brought.

However, given the action of the US government, I think the world is looking for other places to hold their wealth than the US dollar. Therefore, the strength in non US $ currencies and gold.