Sunday, October 12, 2008

CAD - Once Glittering, Now Taking A Back Seat

Canadian dollar is one of my favourite currencies for a very simple reason that Canada is rich in resources. Its oil, uranium etc have added glitter to CAD.

One notable characteristic of CAD is that it moves pretty well in tandem with the international oil price.

Over the past few years when the oil price sutged to sky-high, CAD crept up against USD, making it a shining star. But it was quite low-keyed. As such, it easily slipped the attention of non-players. Canada's bountiful uranium reserves have added value to CAD, giving the currency a strong fundamental.

But, in the wake of the outbreak of the global financial crisis and the dwindling of the oil price, CAD has been losing glitter. I have been tracking Canadian dollar's trend and it seems to me that there is still considerable downside risk.

Fundamentally, CAD has a lot of potentials. This oil-dollar is a buy for long-term holding. If you are a CAD watcher, don't be in the doldrums. The currency would spring one day.

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