Profit on the Greenback Slide

Matt Zeman is a principal with LaSalle Futures Group and chief market strategist for Time Means Money.Com.

CHICAGO (TheStreet.com) -- The greenback continues to fight for its life. After a brief short-covering rally, the dollar index resumed its downward slide Tuesday, at one point trading at 13-month lows. The dollar certainly has a number of negative factors influencing the slippery slope it is on now. After all, the mighty greenback has become the world's funding currency.

Furthermore, barring any surprise hawkish comments in today's Fed statement, interest rates are likely to remain at exceptionally low levels for the foreseeable future. As a matter of fact, futures contracts here at the Chicago Board of Trade show a 41% chance the Fed will keep rates unchanged through March. That's up from 27% just a month ago.

Also, as if these factors are not enough, the Group of 20 nations will be meeting Thursday and Friday in Pittsburgh. Even though expectations for these meetings are generally quite low, people will be listening closely for any discussion of the dollar's role as the global currency.

So the question is, what type of profit opportunities does the weak dollar bring?

Although there are many, today I would like to focus on one in particular. That is the dollar vs. the Canadian dollar, or loonie.

Although the loonie put together its biggest advance vs. the greenback in more than two weeks yesterday, it remains vulnerable. Bank of Canada Deputy Governor David Longworth has expressed concerns over the strength of the country's currency.