RE:RE:Positive Q3 CommentsCentral bank rates override oil price to be sure, and I also see a weak CAD for a while yet. Even the currency market has little faith in our leadership.
That said, a higher oil price still has the power to move the needle creating a stronger CAD.
The recent volatility has created a lot of opportunity, even for retail investors like us. By selling and then buying the same stock on the other side, it generates a bit of profit as the rate bounces up and down in the channels. Played today, one would have made an extra percentage point cash with today's USD/CAD rate change in just a few hours.
autofocus111 wrote: MigraineCall, That's a solid analysis. A comment on one point you made "However, as oil rises, and CAD increases, there will be a recapture at a later date as debt is reevaluated in CAD." Historically, CAD has generally trended with oil/commodity prices. It seems that this time this is not the case (at least not so far). The US FedReserve appears to be firmly commited to increasing rates for some time to come, and the Can government continues to spend like there's no tomorrow. It would not surprise me, gven this, that CAD will continue to exhibit weakness for months to come, despite strength in oil (and grain and fertilizer) prices.