Archived IMT (2010.07.19)

Ashrafs INTERVIEW on BNN earlier today http://bit.ly/c08IiA discussing the euro resiliency, stress tests and the Canadian dollar ahead of Tuesdays Bank of Canada decision. The BoC is widely expected to add to last months 25-bp rate hike, with a similar tightening to 0.75%, but the CAD reaction shall depend on whether the BoC will downgrade its Q2 GDP outlook from the prior 3.8%. After flagging the Euro crisis as a risk, the BoC could well add the US slowdown to its red flags, in which case could lend support to USDCAD above 1.05. OIL MAKES ANOTHER decline from 77.30/40 region fukrther weighing on CAD, which could retest 1.0590-95.