Assignment
Question
This question is related to the article " The loonie 'has no friends' and for contrarians, that could mean it's time to buy." The Financial Post, May 2, 2017.
a) The first sentence of the article said "Bets against the Canadian dollar haven't been this high in more than a year, and U.S. President Donald Trump's attacks on Canada's trade practices are being blamed for the surge." What was the meaning of this sentence? Explain.
b) The article mentioned there are many contributing factors to the demise of the Canadian dollars. Factors mentioned include
• Issues related to the mortgage market
• Drop in oil prices
• A "soft" GDP report
• The interest rate differentials
Explain how each of the above factors contributes to the demise of the lonnie.
c) At the end of the article, the author argued that things might not look that bleak for the lonnie. He argued that a more hawkish tone from the Bank of Canada could help to stop the "bleeding" of the Canadian dollar. Explain the logic behind his argument.
Article: The loonie 'has no friends' and for contrarians, that could mean it's time to buy By Jonathan Ratner.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.