The Canadian has started the new trading week with positive follow through from lastFriday key reversal. Perhaps the Canadian macro economic outlook was overly bearish into the low Friday and perhaps the trade has moderated its fears of slowing in China after data last night, showed the Chinese data tostill be in expansion mode, even if the PMI headline readings was a little discouraging. Given the massive slide inthe Canadian, in January, some measure of technical short covering is to be expected, but with the US thought tobe poised to taper even further, it could take a series of very positive Canadian data points to suggest the Januarylow was some form of a major low.
