Overt strength in the Euro and Pound combined with a Chinese holiday has left theCanadian out of favor. Apparently the Canadian is undermined by weak US economic data, US Fed tapering andperhaps because of ongoing weakness in energy and metals prices. However, we think the trade is becomingoverly bearish toward US growth levels and that today’s US data flows might provide fresh a cushion to theCanadian around the 90.95 level. Pushed into the market we would buy a dip in the Canadian today.
