Canadian dollar hits best levels since 2018 as investors fall in love with commodities again
USD/CAD breaks the January low
If inflation spikes where do you want to be?
Commodities have historically been a great spot, something Goldman Sachs highlighted today in its call for brent to hit $75 in Q3.
Oil companies stocks are surging today, including in Canada where a handful are up around 10% including the giant Suncor, which Buffett sold heavily in Q4.
Canada is a good place to be if there's broader commodity inflation as well, with vast quantities of metals and lumber.
Technically, the break today of the January low in USD/CAD signals we could see a fall as low as 1.20. The drop at the open came in thin liquidity though and the low in Toronto trade so far is 1.2995. I'd like to see a break (and close) below the Jan low of 1.2589 before it's well-and-truly busted.