LOONIE AT MOST OVERVALUED SINCE 2006

Canada’s dollar is ripe for a decline after the fastest inflation since 2012 spurred it to the best gains in the developed world, with technical indicators showing the currency is the most stretched in eight years. The loonie climbed 3.4 per cent in the last three months against a basket of 10 developed nation peers tracked by Bloomberg Correlation Weighted Indexes, and reached the highest since January against the U.S. dollar on Thursday. That has pushed it to the most overvalued level since May 2006 in a measure known as slow stochastics, which signal the rally may be poised to end, according to George Davis, the chief technical analyst at Royal Bank of Canada.