A series of lower highs leaves the Canadian without upside momentum. Like the Pound,the Canadian is at least partially suffering from the residual strength in the Dollar. While exports were positive, thetrade doesn’t appear to have the capacity to climb above 90.74 in the face of the US payroll results. In fact, wecan’t rule out a near term retrenchment to 90.10 in the wake of the volatility later this morning. The Canadian isbottoming but pushed into the market today we would be short looking for a compacted washout.
