The Canadian is showing some impressive action on the charts and is carving out those gains in the face of potential US Dollar adversity. Therefore it is clear that the Canadian is looking beyond Dollaraction and instead is benefiting from the aggressive Chinese rate cut. In other words, the Canadian is getting aclassic fundamental lift and we would not rule out a near term rise back above 89.00. We continue to play for along term bottoming in the Canadian dollar, with a long multiple call core position and periodically we will sellfutures against that positioning, when we think the Canadian has become short term overbought.
