Oil could be taking a dip. Canada's government is in a bit of disarray right now (with a possible no confidence vote for the government on the horizon). Hockey is back, so Canadians will be paying less attention to the economy and more attention to assists and GPG. This means that the CAD could weaken, despite the fact that Canada's short term interest rate is on the rise. Short term problems for the CAD means it could continue to weaken. Long term, as long as the interest rate continues to rise (and it should), the CAD will remain somewhat stable. But in the near term, it's poised to give back some gains.
Here is a chart that explains it all. Click below for a larger view.
