CAD (Canadian Loonie)

Re: CAD (Canadian Loonie)

Postby winston » Wed Aug 31, 2016 1:00 pm

Canada Is In Extreme Bubble Territory -- Here's How To Profit

by John Mauldin

Jared Dillian, former Lehman Brothers trader and noted financial writer, says that low oil prices have hurt the Canadian economy and the real estate market is near the peak of a massive bubble.


The Canadian dollar is facing major headwinds. Dillian notes it’s likely that the US Fed will raise interest rates while the Bank of Canada will cut rates (if they move at all). This dynamic will put more pressure on the already weak Canadian dollar.


Source: Forbes

http://www.forbes.com/sites/johnmauldin ... 553aa341be
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Re: CAD (Canadian Loonie)

Postby winston » Fri Oct 14, 2016 10:35 am

not vested

A Second Chance to Buy the Loonie

By Eric Fry

"There are no second chances in life, except to feel remorse," author Carlos Ruiz Zafón remarks in his worldwide best-seller The Shadow of the Wind.

It's true. Life not only provides second chances to feel remorse, but also third, fourth and fifth chances.

The financial markets are similar. They offer plenty of opportunities to feel remorse. But they also offer abundant second chances to succeed.

In fact, the chart below suggests that investors are getting a second chance to buy the Canadian dollar.

The Loonie Takes a Swan Dive

The Canadian dollar, also known as the "loonie," is in the midst of a five-month sell-off. This is what second chances look like. They are deep corrections that halt a bull market in its tracks... temporarily.

Even the most powerful of bull markets will suffer frightening corrections along the way. During the U.S. stock market's spectacular bull market of the last 35 years, the S&P 500 delivered an annualized total return of more than 11%.

But along the way, it suffered a 31% crash in 1987, a 47% bear market in the early 2000s and a 52% implosion in 2008 and 2009.

Each of those sell-offs provided a second chance - a scary, unnerving second chance.

No investor can ever know exactly when a particular sell-off has exhausted itself. That's why buying into a correction is far more art than science. So let's put on our artists' smocks and take a look around.

At this moment, the foreign exchange markets appear to be offering a compelling second chance... to buy the Canadian dollar.

The loonie has been ratcheting lower against the U.S. dollar for the last five months. This sell-off has erased about 40% of the gains the loonie achieved between January and April.

In the jargon of technical analysts, this correction has dragged the loonie down to "key support" around the 75-level, which means the currency should stabilize somewhere around this level... at least temporarily.

Technical indicators aside, the loonie seems likely to find support from at least one important fundamental influence.

As a "resource currency," the Canadian dollar tends to move in sync with commodity prices... especially with oil prices. But during the last five months, that hasn't happened. The loonie has dropped 4% against the dollar, even though the CRB index of commodity prices has advanced 5% and the oil price has soared 15%.

These divergent trends seem unlikely to continue.

As crude oil and most other commodities continue rebounding from the lows of their wicked 2011-2016 bear market, the Canadian dollar is likely to follow suit.

One of the easiest ways to make a play on the Canadian dollar is to buy the CurrencyShares Canadian Dollar ETF (NYSE: FXC; price: $74.63). This actively traded ETF tracks the Canadian dollar's value against the U.S. dollar. For investors looking to leverage their bets on the Canadian dollar, options on the Canadian Dollar ETF are also available.

Buying the Canadian Dollar ETF at today's relatively depressed level looks like a second chance that is more likely to produce delight than remorse.

Source: The Non-Dollar Report
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Re: CAD (Canadian Loonie)

Postby winston » Tue Jul 11, 2017 7:19 pm

This currency could soar 25% over the next year

by Brett Eversole

Speculative futures trades just hit their most negative level in history, based on the Commitment of Traders (“COT”) report.


The simplest way to bet on a higher Canadian dollar is through the CurrencyShares Canadian Dollar Fund (FXC). This fund also jumped roughly 25% last time around.


Source: True Wealth Systems

http://thecrux.com/top-analyst-this-cur ... next-year/
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Re: CAD (Canadian Loonie)

Postby winston » Mon Jul 31, 2017 8:47 am

Chart of the day: Canada’s hammer candle

by Nicole Elliott

The Canadian dollar has made stellar gains against its US counterpart since early May’s shooting star weekly candle (just under Fibonacci retracement resistance).

A 10 per cent gain in 12 weeks in a major currency pair is not to be sniffed at, yet last week’s hammer candle is a warning sign that perhaps things have moved a little too far – and too fast.

Interestingly it is at the C$1.2400 level, which has contained the low points of this exchange rate for the last two years.

Therefore allow for some correction and consolidation in August within the context of an established medium-term trend to US dollar weakness.

Rallies towards C$1.3000 are seen as selling opportunities.

Source: SCMP

http://www.scmp.com/business/markets/ar ... mer-candle
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Re: CAD (Canadian Loonie)

Postby winston » Fri Oct 06, 2017 9:17 pm

It’s Time to Bet Against the Canadian Dollar

by Brett Eversole

Right now, the COT report shows futures traders are as bullish on the Canadian dollar as they’ve been in four years.


Futures traders love the Canadian dollar right now. To us, that’s a bad sign for the Canadian dollar over the next year or so…


Source: Daily Wealth

http://dailytradealert.com/2017/10/06/t ... an-dollar/
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Re: CAD (Canadian Loonie)

Postby winston » Wed Dec 13, 2023 10:37 pm

This Beaten-Down Currency is Poised to Move Higher in the Months Ahead

by Brett Eversole

The Canadian dollar can go on major rallies, too. They tend to happen after sentiment hits wildly bearish levels… like it has today.

Most investors don’t spend time thinking about currencies. But consider paying attention to the Canadian dollar today… It could be gearing up for a move higher in the months ahead.


Source: DailyWealth.com

https://dailytradealert.com/2023/12/13/ ... ths-ahead/
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