The US Dollar has encountered some doubt on its economic differential edge this week and for some there is also doubt on the US Fed’s capacity to raise rates next year. Therefore some of thedominant status of the Dollar is challenged and that in turn should take some of the pressure off the back of theCanadian Dollar. We think position traders should consider the purchase of December Canadian Dollar 89.50 callfor 103 and the sale of a November 90.50 Canadian call at 38.
