Canadian Dollar on the move:
The Canadian dollar has been on a tear over the last few days moving up through 90.55 cents US. The CAN$ has also been stronger against the Euro and the Yen as well.
The move has been developing over the past few months and the trend appears to be well established. Over the next few months do not be surprised if see the Canadian dollar moves to new all time highs against all three of these currencies as an increasing number of global investors focus on the Canadian market.
The recent flurry of mergers and acquisitions is bringing a lot on interest in to the commodity producing sectors of the markets. As this interest heats up and more Canadian companies become the target of takeovers by other global player the currency will be in much larger demand and this should push the currency higher.
This interest in the mining and energy sectors is just starting so there is plenty of room for continued strength in the currency going forward. There is increasing potential for the Canadian dollar to achieve parity with the US dollar some time in the next year or so. Those investors looking for an attractive currency play should look no further than the Canadian dollar.
The decline in crude oil over the past couple of weeks should not surprise anyone as the geopolitical uncertainty premium that was priced into crude oil had reached extreme levels and now that the uncertainty seems to abated that premium has come back to more normal levels.
All it will take is another violent episode in the Middle East and that premium will return. For those looking for an attractive medium term position look at the large integrated oil companies such as PetroCanada (PCA-T) or Exxon mobile (XOM-N) as they should react to any increase in Middle East tensions.
For more information go to www.campbellreport.com
The move has been developing over the past few months and the trend appears to be well established. Over the next few months do not be surprised if see the Canadian dollar moves to new all time highs against all three of these currencies as an increasing number of global investors focus on the Canadian market.
The recent flurry of mergers and acquisitions is bringing a lot on interest in to the commodity producing sectors of the markets. As this interest heats up and more Canadian companies become the target of takeovers by other global player the currency will be in much larger demand and this should push the currency higher.
This interest in the mining and energy sectors is just starting so there is plenty of room for continued strength in the currency going forward. There is increasing potential for the Canadian dollar to achieve parity with the US dollar some time in the next year or so. Those investors looking for an attractive currency play should look no further than the Canadian dollar.
The decline in crude oil over the past couple of weeks should not surprise anyone as the geopolitical uncertainty premium that was priced into crude oil had reached extreme levels and now that the uncertainty seems to abated that premium has come back to more normal levels.
All it will take is another violent episode in the Middle East and that premium will return. For those looking for an attractive medium term position look at the large integrated oil companies such as PetroCanada (PCA-T) or Exxon mobile (XOM-N) as they should react to any increase in Middle East tensions.
For more information go to www.campbellreport.com
posted by Grant | 5:31 PM
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