Quote:
Originally Posted by symonds
That being said...I fully expect commodities to keep going up for a while. It's just that I have no idea how long a while is. Bubbles can last for years.
On the other hand, there is no way that we could get away with an aggressive turn to policy easing without the Canadian dollar losing ground. It would effectively signal that the Canadian central bank is responding to a policy situation that could argued to be more dovish than the US: tame inflation; financial and credit market turbulence; and economic activity cooling (though not as broadly as in the US as yet).
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wouldn't surprise me at all but I'd predict a quick bounce back down. I'm not going to trade it. How about if Chavez invades Columbia and USA steps in, or doesn't? Oil will go up farther and send the pair back down again. We know how well Bush and Chavez get along, serious Venezuelan threats at cutting off oil would impact this pair. I'm watching it closely.