The CurrencyShares Canadian Dollar Trust (NYSE: FXC) lost more than 2% last week and finished the week near 52-week lows as oil’s rout deepened. Crude futures tumbled more than 10% last week and closed at seven-year lows.

Canada enjoys large natural resource reserves. As we have witnessed, Canada’s oil production could either lift or weigh on the economy, depending on the energy market. Additionally, as we hear more about droughts and dry weather conditions, Canada’s freshwater reserves, which account for 20% of the world’s freshwater, could come into play.

Some observers have warned of a bubbling real estate sector, and traders have bet against Canadian real estate through shorting Canadian banks. In the meantime, the national median home price continues to climb to all-time highs. We will have to monitor how the government plans to engineer a soft landing for the real estate market in an attempt to mitigate a potential fallout. [Tepid Response by Canada ETFs to Surprise Rate Cut]

“The loonie declined as oil dropped to a six-year low, continuing a week-long slide after the Organization of Petroleum Exporting Countries abandoned its output limit. The currency’s fall has boosted the probability futures traders assign to a further interest-rate cut by the Bank of Canada, even as the Federal Reserve prepares to raise rates as soon as next week. The Bank of Canada cut its key interest rate twice in 2015, setting it at 0.5 percent in July,” reports Allison McNeely for Bloomberg.