Archived IMT (2010.07.21)

THE LOONIE RALLY extended into Asian trade as US crude oil closed Tuesday at its 200-day MA of $77.57. IT WOULD BE INACCURATE to attribute CADs strengthening to the BoC rate hike, as the decision was accompanied by a downward revision of 2010 and 2011 Canadian GDP growth, which proved CAD negative for at a good 2 hours. More appropriately, CAD gains emerged on the heels of the broadening rally in risk appetite around Tuesday London close, which was accelerated by French and Spanish newspaper articles quoting Spanish economics minister and France Fin Min that all their banks will pass the tests. USDCAD eyes 1.0320 trend line support, a break of which to extend losses towards 1.0280. Bernanke to speak at 14:00 pm EDT (18:00 GMT) and NOT as 10:00 am EDT (14:00 GMT) as has been usually the case.