The Canadian has shown only modest recovery action this morning despite an improvement in global expectations, initial weakness in the Dollar and gains in energy prices. In short, the Canadian continues to be the least admired currency and the fear of weak commodities and ongoing strength in the Dollar isn’t easily extinguished. We would suggest that shorts will see the risk against their positions rise ahead, especially if a Greek deal is found next week as that could spark another physical commodity market rebound similar to the recovery seen at the end of January. We might add that the late January rally in the Canadian was roughly 282 ticks.
