Did the Vancouver Rioters Take Out the Canadian Dollar? - iShares Core U.S. Aggregate Bond ETF (ARCA:AGG)

On Wednesday night, the Vancouver Canucks lost the Stanley Cup finals to the Boston Bruins. To make matters worse, they did so in Vancouver, and were completely shutout in the final game of a seven game series. Following the loss, fans in Vancouver tore the city apart. Rioters torched cars, shattered windows, and clashed with police. On Thursday, the Canadian dollar depreciated against the greenback, falling roughly 0.30% against the U.S. dollar. Did the riots cause the depreciation? Traditionally, on days in which the Canadian dollar has lost against its American counterpart, oil declines in price. Canada is a major producer and exporter of crude oil, thus its currency has often moved in relation to to the price of crude oil. Yet, crude oil was near flat on the day. Perhaps riots did cause the Canadian dollar to depreciate: just not the riots in Vancouver. Rather, the ongoing saga over the debt situation in Greece may have contributed. Currencies the world over depreciated against the U.S. dollar, as investors may have fled to cash in a safe-haven play.

Action ItemsBullish:

Traders who believe that the Canadian dollar is due for a rally might want to consider the following trades:

Buy Currency Shares Canadian Dollar Trust FXC in a pure long play on the Canadian dollar. FXC attempts to return a value corresponding to the general strength of the Canadian dollar. FXC may rise in value if the Canadian dollar continues to appreciate.
Short Power Shares DB US Dollar Bullish Index UUP in a short dollar play. UUP has a tendency to fall when the dollar falls. If traders did abandon the Canadian dollar for the U.S. dollar, then the U.S. dollar may depreciate if the Canadian dollar rallies.

Bearish:

Traders who believe that the Canadian dollar will continue to depreciate may consider taking positions in the following:

US Short Oil Fund DNO as a short play on oil. If the Canadian dollar is declining in value, the price of oil is probably staying flat or declining as well.
iShares Lehman Aggregate Bond AGG is a long play on U.S. bonds. U.S. bonds may rally if the Canadian dollar continues to fall, assuming investors are seeking to play the U.S. dollar

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