The loonie looms large for Canada ETFs and that could prove to be a drag on those funds and the broader Canadian economy. In fact, some analysts see an extended, multi-year period of loonie weakness ahead.
Persistent downward pressure in Crude Oil has continued to exert downward pressure on the Canadian Dollar. Canadian GDP came in at -.08% for the first quarter of 2015 and -.05% for the second quarter. The oil rich provinces of western Canada are seeing higher unemployment as the energy industry sheds jobs. Still, there are some positive signs ahead for the Canadian economy. The GDP for June came in at a positive 0.5%. Housing prices in Toronto and Vancouver continue to climb. Canadian voters will be going to the polls on October 19th. There is currently a very tight three-party race, and economic news could very well determine if voters return the Conservative party to power or if they elect the Liberals or New Democratic Party candidates,” according to OptionsExpress.
CurrencyShares Canadian Dollar Trust
