Like the Pound, the sharp run up in the Canadian has partly been the result of improvingglobal growth expectations. Given the 300 point rally in the Canadian from the June lows, slightly discouraging Chinese trade data overnight and a deterioration of European economic conditions, the path of least resistance inthe Canadian is pointing downward. Near term downside targeting is seen at 93.35 and we would expect thatsupport to hold unless the economic let down becomes significant and doubt is cast on the potential to seepositive global activity ahead.
