You probably think you know this

You probably think you know which currency is the strongest so far this year among the G10. It is the not USD or JPY, but the CAD. The loonie is up 19% against the GBP, 8% against the euro, 7% against CHF, 5% against USD and 3% against AUD and 1% against JPY and NZD. CAD is also the best performer month-to-date, quarter to date and year-to-date.

Fearlessness or Confidence?

The 45% recovery in the price oil since the start of the year has played a major role in the comeback of the Canadian dollar. But the story is more than just oil. Remember when oil had plunged to 13-year lows at $26 per barrel in January of this year, or 4 months later when wildfires struck in the province of Alberta, destroying 590,000 hectares, making them the costliest disaster in Canadian history. In neither case did the Bank of Canada cut interest rates. That, was a crucial piece of foresight by the BoC in the face of weighing high-profile events vs economic shocks. Today, Canada's main overnight interest rate is at 0.50%, similar to that the US. Yes, the Fed will raise this week. But Canada will not only benefit from the US recovery, but at a positive fiscal balance and lower interest rate.

We could go on, but we'll spare you the details. Meanwhile, 2 Premium trades involving CAD are currently in progress.