Watching the CDN$

Adam Pukalo |

The Canadian Dollar has been the best performing major currency in 2019.

However, investors seem to be shying away from the loonie recently because the Bank of Canada may cut rates on December 4th.

Economic data has said to be a factor in the BOC determining if they will lower rates.

StatsCan reported on Nov 20th inflation held steady in October as the consumer price index rose 1.9% compared to a year ago, which was in line with expectations. 

Since Oct 29th, the Canadian Dollar on the December futures has declined 1.6 cents approximately. 

The futures are nearing an important support, or floor, of 75 cents held since the summer.

If the 75 cents level is broken, 74 cents could be possible. 

One thing I always look for clients is an opportunity to protect their currency risk for their grain prices.

I’m starting to develop some low cost option strategies in case the Canadian Dollar starts to stabilize.

Right now the trend is lower and you might not want to get in the way.