We are somewhat impressed with the Canadian’s ability to hold up near its recent highs in the face of renewed strength in the Dollar. However, for the Canadian to throw off a 4 month old down trendpattern probably requires some type of definitive “all-clear” macro-economic headline development like the USFed pushing back rate hike timing, a resolution of the Ukraine crisis and or another significant easing move by thePBOC. The Canadian should be cheered by the level of Chinese commodity imports that were releasedovernight, as that shows commodities and commodity currencies have value but that value can’t be realized untilthe world generally expects positive growth trends. Pushed into the Canadian today we favor the downside for aminor corrective decline.
