The punishment continues as the BOC is considering a rate cut and the Canadianeconomy continues to suffer negative energy export related problems. The Canadian is probably put under furtherpressure by the slack Chinese data overnight and by statements from Canadian officials that a sharply lowercurrency will eventually help exports. In short, the BOC would seem to be in favor of more punishment in theCanadian exchange rate. From a longer term perspective, one might see 85.00 as the next psychologicallyimportant target in the near term for the Canadian Dollar.
