The Canadian continues to erode as the ultra-strong Dollar combines with deflationary commodity price action for a bearish Canadian Dollar environment. Fresh technical damage on the charts emboldens the bear camp and the only thing one can say about the bear track, is that momentum isn’t particularly impressive. In fact, we suspect that some players are becoming hesitant in pressing the Canadian now that it has returned to the 2008 consolidation low zone. One has to ask, does the Canadian deserve to be trading at post sub-prime condition levels in the current environment, we suggest not, but until the overall global view improves, what would alter the downward bias?
