On reading 18 questin 18 in the CFAI textbooks, Canada has a higher current account surplus relative to the the UK (8% vs -1%). I thought, according ot the savings-investment imbalances, that the country with the deficit (needs to keep strong currency with deficit) will have a strengthening currency?
however, in the answers, it says the the Canadian dollar should see a strengtening. Am i reading this question wrong?
Any help would be awesome. thanks in advance