What's Up (rather down) with the Canadian Dollar?
the Canadian Dollar is tracking the anemic U.S. greenback southward. On Friday, December 8th with the large rise in the U.S. Dollar, the Canadian Dollar did virtually nothing. Seems we cannot get a break here, good or bad.
From a fundamental basis, the reason we see for the decline and the short-term (we hope) predicament for the Canadian Dollar is due to the recent proposed changes in the Canadian income tax laws with respect to all Canadian Royalty Income Trusts. However, the major impact is on the oil and gas sector. Many investors, Canadian and U.S. and others) have been thrown into shock at the decline in value of their trusts and are currently in a dilemma in terms of what to do. This we feel is the basis of the problem with the loonie over which we as investors have no control.