Apparently the view toward the Canadian economy is improved as the Canadian hasmanaged a fresh upside breakout on the charts in the wake of dovish BOC comments yesterday. In other words,the Canadian is seemingly rising off ideas that the BOC is in reality more worried about leaving rates low, thanthey are of spiraling deflationary pressures. Perhaps some BOC officials are concerned about pockets of realestate inflation and perhaps BOC and Fed officials are both on a mission to migrate away from extremely lowhistorical rate levels, regardless of the short term ebb and flow of economic activity. We think the Canadian hasmade a major bottom, but the market is likely to remain in a wide bottom range bound by 91.34 to 89.00 foranother month.
