Canadian Dollar Market Snapshot: That which doesn’t kill you makes you stranger
The Canadian dollar has endured a series of consecutive blows that might reasonably have been expected to break it. The abrupt collapse of the shale boom, a worldwide pandemic, the unwinding of a generational housing bubble, and a trade war with Canada’s largest trading partner have followed one another in disorienting succession. Yet the loonie has held within a narrow range for most of the past ten years and has essentially flat-lined this year, while both implied and realised volatility are sitting close to multi-decade lows. A currency once viewed as a highly-speculative bet on commodity prices and a proxy...