Stronger greenback giving Canadian railways a leg up: J.P. Morgan

The Canadian railways are set to outperform their U.S. peers as long as the greenback keeps strengthening, says J.P. Morgan.

The Canadian railways are going to outperform their U.S. peers so long as the greenback keeps strengthening, and that trend is likely to continue for all of those other year, say J.P. Morgan analysts.

The U.S. dollar has soared about 25% in the past nine months against a gift basket of global currencies, including a 6% jump in the past three weeks, and is currently sitting near a 12-year high. J.P. Morgan\’s Global FX Strategy team expects the rally to continue, arguing that \”a strong U.S. dollar will stay a focal point throughout 2015.\”

This is anticipated to wreck havoc on trade flows, putting pressure on exports and also the U.S.-based railways that ship them.

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