The Canadian Dollar carved out a higher high overnight but the presence of the US Fedstatement leaves a potential volatility event in the offing later today. With Canadian exports showing strengthrecently, China punching the gas with stimulus yesterday and the Dollar facing a critical junction today, we seethe 91.00 level in the Canadian as a price level that won’t be maintained for long. Even if the US Fed takes a passon hawkish statements today, the trade will probably revive that threat quickly in the weeks ahead. Therefore arally in the Canadian today is probably an opportunity to get short at a higher level.
