Hope for a Canadian rate hike in the next quarter or two have gone to the ash-bin as the BOC reiterated its intention to hold rates at 0.25% until the end of Q2 2010 and dangled the potential to use QE to weaken the CAD. It’s sort of like me threathening to take away my 16-year old’s Ipod. It sharpened the attention span.
Huge stops are seen in the 1.0425 area, so get ready for some fireworks near-term.
