Some of the Canadian’s strength might be the result of rising rate threats from the BOC as they work to prevent a housing market bubble but it is also possible that overt weakness in almost all otheractively traded “Non-Dollar” currencies is providing the Canadian with a win by default edge. However, ongoingweakness in most commodities, uncertainly toward China (a key export market for Canada) and residual strengthin the US Dollar should make a sustained rally in the Canadian unlikely. However, a note of caution, if August USnon-farm payrolls are not revised higher, the Canadian might be expected to get the biggest benefit of all nondollarcurrencies in the next 36 hours of trade.
