Like the Pound, the Canadian is under pressure because of less than optimistic global economic prospects. While we wouldn’t suggest that the Canadian was priced for economic perfection into theearly July highs, the currency was getting the benefit of the doubt on the prospects of forward movement inChinese and US economic activity and while that view hasn’t been completely altered, the trade is still in theprocess of downgrading its expectations. Therefore we can’t discount a potential return to the 91.00 level in thecoming sessions.
