A noted range up extension in the June Canadian overnight might be the result ofanticipation of a slight drift toward more hawkish policy ahead from the BOC. While economic data has beenpositive many doubt that the data is strong enough to result in a distinct shift in policy. On the other hand, part ofthe gains in the Canadian might be the result of more positive global equity market action, noted weakness in USTreasuries and step wise improvements in global economic sentiment. If a number of central banks are at leastconsidering tightening, that is a stark contrast to the last 6 years when easing was expected to remain in place foras far as the eye could see. We wouldn’t want to chase the Canadian with buy orders but a retrenchment toconsolidation support of 90.41 could be bought.
