The Canadian is in a similar position as the Pound in that it needs to see classic globaleconomic optimism to reject the sub 90.00 zone and reverse the September 2013 to January 2014 down trend! Part one of a bottoming environment was a generally positive spin from the Chinese government meetingovernight but part two is evidence that the winter drag on North American economic activity is passing. We thinkthe Canadian is in a bottoming process but temporary returns to 89.66 are still possible, especially if the FridayUS numbers are soft and or the next Canadian jobs result is discouraging.
