Archived IMT (2010.04.29)

LOONIE DROPS ACROSS THE BOARD as Bank of Canada governor Carney plays up the downside risk to Canada RISK from sovereign debt troubles. USDCAD gains half a cent to $1.0070, while CADJPY retreats from 93.97 highs. Although we favour CAD over its sister commodity currency the AUD, buying pressure emerges strong near parity. And when we integrate Tuesdays 31% decline in the VIX6rd largest daily increase on record, the sustainability for improvement in appetite remains dubious. Dip-buying remains preferable between 1.0 and 1.0050 onto 1.02, while EURCAD and AUDCAD seen capped at 1.3380 and 0.9370.