Reported about 2 months ago
Traders continue to hold significant short positions against the Canadian dollar, totaling approximately $12 billion, despite a recent rally in August. This bet is influenced by a pessimistic outlook for the Canadian economy, marked by job losses and cooling inflation, prompting expectations for further interest rate cuts by the Bank of Canada. The loonie's recent strength reflects a broader weakness in the US dollar, as economic data shows disappointing trends globally, further complicating the outlook for Canada's currency.
Source: YAHOO