Like the Pound, the Canadian is benefiting from a revival of global risk on sentiment. Clearly the Canadian was oversold fundamentally and technically and seeing widespread deflationary sentimentjustified the temporary slide to the lowest levels since 2009. However, seeing a significant jump in volume on thespike down move and seeing the market reject this week’s lows should hint at a moderately significant low in thecurrency. In order to make 88.00 a significant low requires dovish Fed guidance later today, signs that the equitywash is over and lastly, clear signs that oil prices have stabilized.
