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Columnist David Rosenberg argues the Canadian dollar is undervalued relative to oil prices and expects the loonie to strengthen. He says the recent US tariffs on Canadian dairy and softwood lumber will trim Canadian GDP growth by less than 0.1 percent.
He cites oil near $50 a barrel as supportive.
The view is an opinion on currency valuation, not a new event. If the loonie firms on higher oil, Canadian-origin feed costs for US buyers would rise, but the effect on feed commodities is small.
theglobeandmail.comDavid RosenbergApr 27, 2017Not enough comparable past events yet for a historical read.
After 487 past bullish macro events, WTI moved a median +1.0% over 5 sessions (60% higher; middle half -2.0% to +4.0%), and +1.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
