The loonie can swing quick and make a Tax-Free Financial savings Account (TFSA) really feel jumpy even when your shares act calm. A stronger Canadian greenback can shrink the worth of U.S. exposures. A weaker loonie can puff those self same holdings up, then snap again. Earlier than you chase the “proper” change fee, deal with what you management. Match your holdings to the place you spend, personal firms that earn in several currencies, and maintain lengthy sufficient to outlast the noise. Total, your TFSA plan shouldn’t depend on prediction. Construct a portfolio that also is smart if the CAD/USD fee strikes 5% in both route.
The technique
A method that works via forex swings begins with a core and a counterweight. Maintain the core in Canadian-dollar belongings that match your Canadian targets, like broad TSX publicity and a bit of money. Then add a counterweight that may profit when the loonie weakens, equivalent to companies that promote into international markets priced in U.S. {dollars}.
Subsequent, construct guidelines that hold you from meddling. Contribute on a schedule. Rebalance on a schedule. If the loonie strengthens and your U.S.-exposed sleeve shrinks, prime it up. If the loonie weakens and that sleeve grows, trim it. This behavior turns forex swings right into a sign as a substitute of a stress set off.
Lastly, choose exposures the place forex helps however doesn’t carry the entire thesis. Commodity-linked companies typically match as a result of many merchandise worth in U.S. {dollars}. A robust operator can earn U.S.-dollar income whereas paying many prices in Canadian {dollars}, which may help margins when CAD falls. You continue to want high quality and contracts, as a result of a forex tailwind can’t rescue sloppy execution.
Think about CCO
Cameco (TSX:CCO) gives an instance of that counterweight. It operates within the nuclear gas cycle, with uranium belongings in Saskatchewan and a 49% stake in Westinghouse. During the last 12 months, the story stayed centred on the safety of provide. Utilities hold signing long-term contracts, and governments hold framing nuclear as agency energy for a grid that wants extra electrical energy.
Cameco additionally handled operational headlines. In late August 2025, it warned a few manufacturing shortfall at McArthur River and Key Lake and pointed to planning and market purchases to fulfill deliveries. After the third quarter, it highlighted a strategic partnership with Brookfield and the U.S. authorities aimed toward accelerating new Westinghouse reactor builds, with an combination funding worth of at the least US$80 billion. That blend reveals the trade-off: execution danger immediately, plus a runway if new builds ramp.
Current earnings present why the inventory can transfer on timing. Within the third quarter of 2025, Cameco reported income of $615 million and delivered adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) of $310 million, even because it posted a small internet loss. Administration additionally reported $779 million in money and money equivalents and $1 billion in complete debt. The stability sheet provides it flexibility, however quarterly supply schedules can nonetheless swing outcomes and headlines.
Silly takeaway
Trying forward, Cameco’s contracted ebook provides the TFSA case some spine. It stated it had contracts in place for common annual deliveries of over 28 million kilos of U3O8 per 12 months over the following 5 years, and it narrowed 2025 uranium gross sales and supply steerage to 32 to 34 million kilos. That type of visibility can matter greater than the spot uranium chart.
So, might CCO be a purchase if CAD/USD swings? It may possibly, if you would like a TFSA holding that advantages from U.S.-dollar uranium pricing and long-term nuclear demand, and should you can tolerate drawdowns when sentiment turns. It may not swimsuit you should you want a discount or a easy journey. Use it as one sleeve in a balanced TFSA, rebalance with self-discipline, and let the loonie do its factor.