# Why Merrill Lynch thinks the loonie is about to take a sudden turn lower - The Globe and Mail

> Merrill Lynch FX strategist Ben Randol said in a Dec. 15 report that hedge funds are rapidly unwinding long Canadian dollar bets. He expects the loonie to fall to 75 U.S. cents early in 2018 as retail investors follow.

- Date: 2017-12-19 · published 2017-12-19T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/67687-why-merrill-lynch-thinks-the-loonie-is-about-to-take-a-sudden-turn-lower-the
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Canola Meal](https://feedsoft.ai/c/CANMEAL.md)

## Why it matters

A weaker Canadian dollar makes Canadian-origin feed inputs cheaper for US buyers and lowers the USD cost of Canadian canola meal and barley. Expected loonie weakness is a modest bearish signal for Canadian-origin feed prices in USD terms.

## Read by commodity

- USDCAD: bullish ▲
- CANMEAL: bearish ▼

## Sources

- theglobeandmail.com: https://www.theglobeandmail.com/globe-investor/inside-the-market/why-merrill-lynch-thinks-the-loonie-is-about-to-take-a-sudden-turn-lower/article37383271/

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