# The loonie is not as strong as it seems - and investors are piling on bets it’ll soon tumble - The Globe and Mail

> Investors have built large short positions against the Canadian dollar despite its five-month rally to around 76 US cents. Strategists note the currency has lagged its commodity and US dollar tailwinds, with Scotiabank's Shaun Osborne questioning the bearish sentiment.

- Date: 2020-08-27 · published 2020-08-27T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/51855-the-loonie-is-not-as-strong-as-it-seems-and-investors-are-piling-on-bets-it-ll
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Heavy speculative shorting on the loonie signals positioning risk that could reverse the currency's gains, which would affect the cost of Canadian-origin feed ingredients priced in US dollars. The commentary centers on currency positioning rather than a direct supply or demand change for feed.

## Read by commodity

- USDCAD: neutral

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/investing/markets/inside-the-market/article-the-loonie-is-not-as-strong-as-it-seems/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.