Canadian Dollar's 'Mini-Dollar' Status Puts It at Risk

Imagine the Canadian dollar, the loonie, is like a mini-me of the US dollar.

When the US dollar goes up or down, the loonie often does the same.

RBC says this close connection is getting stronger, even though Canada trades with the US less than before.

If the US dollar gets weaker, the loonie might also get weaker.

Right now, the US dollar is down against currencies like the Euro and Yen, and the loonie has also gone down a bit.

If traders start to see the loonie as just a reflection of the US dollar, it could become a self-fulfilling prophecy.