Focus tilting to reflation trade From reddit mania

Last week was a slow one for the markets as investors took a breather from gains earlier in the month and reshifted their focus from the Reddit frenzy to the reflation trade. That, says Macan Nia, senior investment strategist at Manulife Investment Management, is “going to be very much the story over the next couple of weeks or months because that will have implications not only in the bond markets but in equities.” Nia told The Canadian Press the loonie could surpass US80 cents by summer as oil prices rally to US$65 to US$70 per barrel. “A lot of the gains have already been built-in but again the path of least resistance in our view anyways is higher for the Canadian dollar versus the U.S. dollar.” Nia believes crude will continue to improve throughout 2021.