US Dollar Tracking Lower- Updates: FTS, ALA, CPX, AW, WCP
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Since the first week of May-2017 the US dollar has declined compared to most all of the world's major currencies. Trump talks about the rising US stock market, never about the falling US currency.
The average decline has been between 3-5% depending on the index used. Compared to the changes for 10 year bond yields over the same period of time, US 10 year bonds yields have almost been unchanged while rising everywhere else. Threat of nuclear confrontation, political bedlam and return of gridlock in Washington, perhaps the collapse of oil prices, there are plenty of reasons. The Canadian currency has had the largest gain, recovering from the pre-election rebuke of NAFTA that was just an opening negotiating position for the US. The US dollar is expected to decline further, the reason and implications for valuations is the topic this week.
Updates for Q2-2017 earnings include Fortis Inc. (FTS, FTS.PR.F,G,H,I,J,K, M), AltaGas Ltd. (ALA, ALA.PR. A,B,E,G,I,K,U), Capital Power Corp. (CPX, CPX.PR.A,B,E,G,U,New), A&W Revenue Royalties Income Fund (AW.UN) and Whitecap Resources (WCP). For the preferred share segment both the 3 month and 5 year rate reset categories share prices increased by 0.4%, the fixed rate preferred shares increased in value by 0.2% for the week. This rate of gain over the past 6 weeks for the rate reset versions has slowed and the fixed rates were up compared to being lower for each of the past 5 weeks. This will be covered further in the review of interest rates compared to interest rates that are remains relatively stable, compared to what is happening with the US dollar.
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