It’s gonna get worse before it gets better. That’s the message from Canadian PM Harper. He acknowledges continuing job losses third year and said he anticipated them and that’s why he has a stimulus plan.
USD/CAD is lower on the day after a sharp rally following the very ugly Canadian employment report. The Loonie has benefited from the reflation trade as hopes that Chinese and US stimulus and upticks in ISM figures and PMI figures presage an economic recover later this year. The CRB index is up 1.25% this afternoon.
USD/CAD ran into heavy Canadian corporate selling on the 1.25-handle after the data this morning. Stop lie in the 1.2215/25 region at the moment.
