Investors Hit the Brakes on Loonie Fund as Outflows Bite Into FXC
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The Invesco CurrencyShares Canadian Dollar Trust, ticker FXC, saw a sharp reversal in sentiment on December 17, 2025, with investors pulling $3.55 million from the fund. The outflow, equal to roughly 4.77% of the ETF’s latest reported assets under management of $74.55 million, marks a meaningful repositioning in a niche corner of the currency ETF market.
Such a sizable single-day redemption suggests that some investors are reassessing their exposure to the Canadian dollar against a shifting macro backdrop, potentially driven by evolving expectations for interest rate paths in both Canada and the United States. While FXC is designed to track the performance of the Canadian dollar versus the U.S. dollar, the latest flows indicate that confidence in further near-term upside for the loonie may be waning.
The related asset, FX:USD-CAD, is currently trading at 1.37938. Over the past three months, the pair has been almost flat, with a marginal move of -0.22%, underscoring a period of relative range-bound trading despite global FX volatility. However, the short-term technical picture looks more fragile: the 1-day signal flashes Sell, hinting that traders may be positioning for near-term Canadian dollar strength against the greenback, even as ETF investors pare back their exposure.
The divergence between cautious ETF flows and a short-term bearish technical signal on USD/CAD underlines the uncertainty gripping currency markets as investors weigh central bank policy shifts, commodity price swings, and growth prospects on both sides of the border.
For a more detailed analysis and real-time sentiment trends, check the live currency exchange rates here.