Canadian dollar - Hold on to your Loonies Canada!

The Canadian dollar went to parity last week for a short time before dropping back to the .99 cent U.S. range. It dropped another half cent later in the week to around .985 US.

This surge and short pull back can be easily explained in the context of the U.S. dollar. Essentially, it is dropping, like a stone, in the face of more quantitative easing (QE2) on the agenda of FED chairman Ben Bernake.