Meanwhile, the CurrencyShares Canadian Dollar Trust (NYSEArca: FXC), which tracks the Canadian dollar’s movement against the U.S. dollar, declined 16.2% so far this year. [Country ETFs That Are Most Sensitive To Oil Declines]
The Canadian dollar has been suffering as oil, a major export for the economy, declined to 11-year lows. However, SocGen believes that oil-related currencies could recover next year as oil prices rebound. [OPEC Tries to Give Oil ETFs Some Good Cheer]
However, the road toward a stronger loonie may still be filled with hurdles, with Steven Englander, head of G10 FX strategy at Citigroup, warning that “there is a high risk that USDCAD will have to go well above 1.40 in the first half.”
CurrencyShares Canadian Dollar Trust
For more information on the loonie, visit our Canadian dollar category.
Max Chen contributed to this article.