FCAN - Loonie And Canadian Stocks Historically Follow U.S. Rates Lower
The Canadian dollar has gained 4.3% against the U.S. dollar since the start of 2019 for reasons that include, a softer greenback on expectations of US rate cuts, some rebound in commodity prices as the U$ has weakened, stronger Canadian gross domestic product for April (backward-looking) and a trade surplus in May (backward-looking) for the first time in ten months. See: Loonie soars as the Canadian economy firms while the US wobbles.
Indeed, as shown below, the divergence between Canadian and US economic surprise indicators has widened year to date by the most since the