Summary The Canadian economic outlook remains uncertain. Weak oil prices and relatively low interest rates have kept the Canadian dollar down against the U.S. dollar. Sentiment suggests a turnaround may be coming soon. Editor’s note: Seeking Alpha is proud to welcome Sentimental Trader as a new contributor. It’s easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to the SA PRO archive. Click here to find out more » Despite falling oil prices and an uncertain economic outlook, traders’ positions suggest the Canadian dollar is bottoming and likely to soon rise against the U.S. dollar rather than continue to fall. Since its intermediate top in September 2017, the loonie has steadily lost ground against the U.S. dollar, and not even the recent plunge in U.S. and other stocks has been able to break the trend. From: StockCharts.com But if there’s one accepted truth about Canadian dollar strength, it’s that it is closely tied to price of oil. Oil prices have basically been in a downtrend since the spring of 2011, reaching the kind of price lows that make Canadian oil company executives want to leave it in […]
