Hedge Funds Wager the Loonie Rally Has Legs
- Speculators flip to net-long, after record short stance in May
- Canadian dollar has rallied 7.4% against greenback this year
Inflation Paves Way for More Canada Rate Hikes
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It took the first Bank of Canada rate hike in seven years, but hedge funds are finally convinced that the loonie’s strength is here to stay.
Less than two months after amassing record short positions against the Canadian dollar, hedge funds and other large speculators have done an about-face. As of last week, they’re wagering that the loonie’s rally has room to run, flipping to a net bullish stance for the first time since March, Commodity Futures Trading Commission data released July 21 show.