George Davis Canadian Quotations

Since Friday, we've seen the Canadian dollar do very well against the crosses, particularly against the euro and the sterling. That seems to be driving most of the Canadian dollar gains right now.

I think we've seen a little bit of a Canadian dollar rally on some of the crosses, so that's been a benefit, and there's been some corporate interest to sell the U.S. dollar (versus Canada) in a fairly thin market.

I think there's a little bit of concern that we might see oil prices back up above $70 and as a result of that, I think there is a little bit of a positive spin for the Canadian dollar.

Just given the fact the market wasn't able to push the Canadian dollar above that 12-year high that was set last November, I think that caused a few people to look at taking some profits on some of their long Canadian dollar positions.

Last week we saw oil give back a sizable amount of recent gains and I just think that given the fact that we have seen some weakness in oil prices as a result of that, that's weighed on the Canadian dollar as well,

That allowed the Canadian dollar to basically move back toward the 14-year high that we saw in early March.

We saw not much of a reaction to the Canadian data, but a little bit of a pop after the U.S. data came out, but on balance we haven't really moved.

The rise of the Canadian dollar is partly driven by the short-term selling pressure of the U.S. dollar after the tape came out.

There's been a little bit of corporate and cross interest to buy the Canadian dollar, which appears to have had a little bit of an impact, and I think the market was focusing on support that was very close to 1.17 (85.47 U.S. cents).

The interest rate side is probably giving the Canadian dollar some support against other currencies.

The Canadian dollar is grinding lower, playing catch-up with the price correction that we saw in oil last week.

In terms of correlations, natural gas has tended to have the highest correlation with the Canadian dollar over the last year or so.