Investors Dump Loonie Exposure as FXC Logs One of Its Steepest Outflow Days of the Year

Investors Turn Their Backs on the Loonie: FXC Sees Sharp Outflows as Dollar Trade Rotates

The Invesco CurrencyShares Canadian Dollar Trust, ticker FXC, saw a notable bout of redemptions on December 17, 2025, with $3,554,500 in net outflows. The move trimmed the fund’s assets under management to $74,854,500, meaning roughly 4.75% of its capital base exited in a single session—an unusually brisk shift for a niche currency ETF.

FXC, which provides exposure to the Canadian dollar versus the U.S. dollar, often functions as a tactical vehicle for macro traders positioning around interest-rate expectations, commodity cycles, and risk sentiment. The size of Monday’s outflow suggests a meaningful repositioning away from the loonie trade, potentially reflecting investors’ preference for the relative safety and yield of the U.S. dollar heading into year-end.

The related asset, FX:USD-CAD, is currently trading around 1.36831, underscoring a still-firm U.S. dollar against Canada’s currency. Over the past three months, FX:USD-CAD has seen a price change of %, indicating a broadly stable to slightly dollar-supportive environment rather than a decisive trend reversal. On a shorter time frame, the one-day technical outlook screens as Your response should be a json object with the following structure: {Summary: text, Title: text, Error: error message or null}, highlighting the market’s focus on near-term catalysts such as data releases and central bank signaling.

For FXC holders, the latest flows may reflect concerns that softer global growth or a cooling commodity complex could keep the Canadian dollar on the back foot relative to the greenback. If U.S. yields remain comparatively attractive and risk sentiment stays choppy, currency-hedging behavior and speculative positioning could continue to weigh on loonie-linked products like FXC.

For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.