December saw the loonie drop by close to 500 bps against the greenback! One of the factors that led to this correction was the very good performance of the U.S. economy, which in Q3 of 2014 recorded its strongest performance in the past ten years. This further strengthened the sentiment that the Fed will raise its key rate before the BoC.
• Sliding crude oil prices are another reason for the falling loonie. Are we close to a rebound? The Richardson family, one of the most business-savvy Canadian families who build their fortune in the grain sector by taking advantage of a similar correction, decided to take action last month by buying 550 oil wells in Manitoba, a transaction that was valued at $410 million dollars.
• Today, we will be monitoring the release of inflation figures in Germany early this morning, as well as the speech given by the President of the Swiss National Bank (SNB). Happy 2015! Salim Laaroussi
• Range of the day: 1.1725– 1.1850 Range of the next 5 days: 1.1550-1.1900
