The CND$ has rallied strongly over the past 5-6 weeks BUT is up against strong resistance AND rising 10 year U.S. bond yields.
The difference in BOND YIELDS between Canada and the States is the strongest reason for the change in currency. Weak economic data along with FEAR of weaker data caused bond yields to weaken in the U.S. sending the GREENBACK lower against the LOONIE. I believe that much of this currency move has happened and that as 10 year bond yields move higher in the U.S. again the CDN$ will reverse and move lower again.
SUGGESTIONS: buy US$ now for spending in the next 12 months.
The views expressed do not necessarily reflect the opinion of Argosy Securities Inc. This does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. Please consult a professional before making an investment decision.