The Canadian probably benefited from favorable home price data recently and it mightalso have benefited from news that foreign investment flowed back into Canadian securities in the latest monthlyreadings. It is also possible that the Canadian saw some lift from favorable US data yesterday and it is alsopossible that talk of a pause in US tapering on Wednesday, is providing the Canadian with some temporary lift.We think the Canadian has made a major bottom, but it could be difficult to start a consistent swing higher, untilthere is a better overall outlook for China and US economic activity.
