Quiet Accumulation in Loonie

While parity or better with the dollar surprises the 'experts', it does not surprise capital. The new highs in REV(E), also known as trend energy, and positive divergence with price imply quiet accumulation since October 2010.

Canadian Dollar ETF (FXC):


Headline: Dollar holds parity as currency wars heat up

Canada's dollar is being pressed higher by a "beggar-thy-neighbour" policy of competitive currency devaluation, a situation Brazil warned over the weekend threatens to expand into a global "trade war."

The loonie, now into its eighth straight session of trading above the U.S. currency, appears to be gaining its strength from Canada's non-interventionist approach, said BMO Capital Markets economist Benjamin Reitzes.

Brazil has complained loudly that policies in the United States and China are driving down the greenback and yuan, thus driving up the currencies in fast-growing emerging markets.

Source: vancouversun.com