The exchange traded fund, iShares MSCI Canada (EWC), can be a way to hedge exposure to the Canadian market. The Canadian dollar will find it difficult to secure strong buying interest, especially if global commodity prices weaken further. Any sustained slowdown in the U.S. economy would also tend to damage the Canadian currency.
The unfolding U.S. and global economic slowdowns indicate the strength in Canadian dollar won’t last. A moderation in Canadian growth is inevitable given the strong correlation with the U.S. business cycle.
Yaser Anwar is a guest author at ETFtrends & the editor of Investment Ideas by Yaser Anwar blog. The author of this article is not a registered financial advisor & does not give investment advice. This article does not comprise any solicitation to buy or sell securities, ETFs or other investment vehicles.