Within a mere three days, we North American neighbours have lots to celebrate. While our spirits may be in a parallel state, the recent divergence between the U.S. and Canadian dollars have begun to take a larger share of the financial headlines over the past few weeks, and for good reason. The Canadian dollar now sits at about 95 cents per U.S. dollar, down from parity in early May, and many expect it to weaken further amid the ever-changing fortunes of the U.S. dollar. The loonie, emerged from the second quarter of this year with a loss of 3.3%, bringing its total retreat to 6% so far this year. Most recently, the declines have been accelerated by developments in the United States, where the U.S. Federal Reserve has raised the likelihood of beginning to “taper” stimulus measures in the fall, and in China, where troubles cloud the demand outlook for commodities. If you'd like to learn more about how currency impacts investment performance, click here.

Whatever you ended up doing over the long weekend, I hope you enjoyed yourself. A few of you asked me what a "workout weekend" actually meant from last week's note. Well, I'll tell you. It involved a (very hilly) 35km cycle around the Collingwood area and two hikes up Georgian Peaks with some very scenic yoga at the top of the mountain. I highly recommend it.

Enjoy the weekend.

D.

Dian Chaaban

Investment & Wealth Advisor

Chaaban Wealth Management Group

416.842.4234