The Canadian Dollar has surprisingly managed to bounce in the face of a noteddeterioration in global economic conditions. Perhaps the Canadian was oversold technically, but the fundamentaljustification for getting long the Canadian would seem to be missing. Certainly the Canadian sees some recoveryoff the idea that the shine has come off the US macro economic differential with the Canadian economy, but itwould seem to be very difficult to think that the Canadian Dollar has made a major bottom and is poised to rally offanything but short covering action.
