LOONIE POUND ARB

摘要

In our December column we labelled the NZD/CAD as "The Big Short." The pair fell 6% from its November highs and by mid-December it was the highest returning combination among the G10 currencies. It is widely known the U.S. dollar has strengthened significantly since Donald Trump's victory in the U.S. presidential election. But do you know which currency is the strongest in 2016 through Dec. 15 among the currencies of the largest 10 nations? It is not the U.S. dollar or the Japanese yen; it is the Canadian dollar, though the largest gain occurred in the first half. Since the start of 2016, the loonie is up 19% against the U.S. dollar, 8% against the euro, 7% against the Swiss franc, 5% against the Australian dollar and 1% against the yen and the New Zealand dollar. More importantly, the loonie is not only the best performer since the start of 2016, but also the best performer since the start of Q4.