The Canadian dollar is declining vs the US dollar and most likely will continue to weaken as the Canadian economy weakens and equity markets are entering a "Risk Off" period. Money will flow from Europe and Asia to the safety of the US dollar.
The Euro has completed its 7 month bear market rally and is now headed lower vs the US dollar.
It has clearly broken below the 7 month rising trendline.
It is time once again for Canadian investors to be long the US dollar and short the Euro.
The ETF to be long the US dollar and short the Euro is EUO trading on the NYSE.
EUO is the ProShares Ultra Short Euro ETF. It has 2X leverage. So if the Euro declines 5% vs the US dollar EUO will rise roughly 10%.
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