The Japanese yen, the U.S. dollar, the euro. These are the currencies many of us talk about on a near-daily basis. But the Canadian dollar and its exchange traded fund (ETF) may have been overlooked in the conversation.

The Canadian dollar has been on a tear, now surging close to a 20-month high as foreign investors pour into the currency. On Friday, the currency closed gaining for 11 consecutive days, the longest streak in 23 years, says Tavia Grant for the Toronto Globe and Mail. This means that soon, the Canadian dollar could hit a record and surpass parity with the U.S. dollar. [Other Currency ETFs to Play Market Conditions.]

Friday’s U.S. employment data and trade numbers had a lot of investors speculating about the long-term potential of a Canadian dollar rally. [Our Guide to Currency ETFs.]

Shocked Investor on Seeking Alpha reports that the Bank of Canada may be set to raise interest rates in the wake of a faster-than-expected job market recovery, which could help keep the trend in place. [9 ETFs for U.S. Dollar Bears and Bulls.]

If you’re playing the Canadian dollar, have an exit strategy at the ready to protect yourself on the downside. [How to Follow Trends.]

For more stories about currency ETFs, visit our currency ETF category.

  • Currency Shares Canadian Dollar Trust (NYSEArca: FXC)

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.