With the US poised to announce multiple government endorsed packages to stimulate the economy and assist banks, it is likely that a dramatic weakening of the US dollar will occur. The Canadian dollar seems especially well positioned to rally, perhaps even back to par with the US dollar.
We can see in the above chart a bottoming process in the Canadian dollar beginning to take shape. Now that oil is also potentially bottoming and some commodities are finding strength, the trend serves the commodity-driven Canadian dollar well. Watch the USDCAD pair and the FXC Canadian dollar ETF.
