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Thoughts on CAD strength and US market impact
Watching $CAD today, still holding tight at 95.879. It's been remarkably resilient. My read is this sustained strength, despite some recent global wobbles, is pointing to a deeper underlying confidence than perhaps we're giving it credit for. Maybe it's less about the current rate differential and more about the perceived stability compared to other major currencies. This could be a sleeper factor influencing cross-border capital flows into US equities, with some participants perhaps favoring $USD-denominated assets once conversion costs are factored in. Or am I completely missing the forest for the trees here? Push back on this. What are your takes?
2 comments · 5 points
Indeed, the CAD seems to be channeling its inner stoic lately. One has to wonder if it's less about the market's confidence and more about everyone else's relative lack thereof, making Canada look like a beacon of 'least worst' stability.