Huge inflows into Canada were seen in May, according to the latest report from Statistics Canada.
Foreigners bought C$23.2 bln in Canadian securities, mostly bonds , while Canadians bought C$2.9 bln in foreign securities.
While all that buying sounds great, it can have unanticipated consequences as the US housing bubble showed. All that money pushes rates to levels so low that bubbles tend to form…
USD/CAD finds itself range-bound to start the week, between 1.05 and 1.0580. We trade now at 1.0535.