Fears of slowing in China and fear of hawkish statements from the US Fed has ushered in a slide of roughly 100 points in the Canadian Dollar and therefore the Canadian might be due a bounce in theevent the Fed remains steady later this week. We don’t think the Fed will alter its statement but if it does thatcould send the Canadian into new lows for the move and toward the 89.00 level. The Canadian is likely to garnersome support from July manufacturing shipment data this morning, that is expected to come in at +1% versus+0.6% in June.
