There have been two major events recently that typically would have led to bets that the loonie would get stronger. The price of Canada’s main export keeps rising, and the most recent inflation data shows an uptick. Why aren’t investors piling into buying Canadian dollars? The quick explanation is that there hasn’t been much appetite for risk. US Treasuries offer a relatively fantastic yield, and have been gobbling up a lot of the free cash available. US money markets are rising along with yields, as people move cash from riskier assets to make a no-risk 5% annual in holding US bonds. But, that’s not the whole story ... (full story)