You can’t keep the world’s best performing currency down apparently. The Canadian dollar took a hit yesterday after the Bank of Canada held its key rate and struck a more dovish tone than markets expected. But it soon rallied to trade at 76.5 US cents, (it was up to 76.62 this morning). In June the loonie jumped two cents when U.S. Federal Reserve Chair Jerome Powell first signalled an upcoming rate cut, reports the FP’s Victor Ferreira. And some economists say if the Fed cuts and the Bank of Canada continues to hold, the currency could shoot as high as 80 US cents.
Not such a great outlook for Britain’s pound though. In its Financial Stability Report, the Bank of England says the risks of a no-deal Brexit have risen and warned such an exit would slam the pound, government bonds and house prices. It expects ‘significant market volatility and asset price changes’ with a risk of ‘material economic disruption.’ The good news is big banks are considered strong enough to weather both a global trade war and disorderly Brexit.
Beleaguered cannabis company CannTrust is set to take another beating today, with the stock trading down almost 8 per cent in pre-market. Earlier this week the company announced that Health Canada was putting thousands of kilos of pot on hold because it had been grown in unlicensed rooms. More bad news today when CannTrust’s Danish partner said it would have to quarantine more batches of cannabis oil and warned of a temporary shortage of medical marijuana. Ontario has also pulled several CannTrust products from its store. Up to yesterday’s close the stock had lost 36 per cent this week.