Archived IMT (2009.03.24)

We warned readers in an earlier IMT that USDCAD was preparing to push higher from its 1.2230-40s towards the 1.2290s and higher in the event of deteriorating selling in US equities. Also warned of the pick up in selling momentum near the end of session which amplifies the moves in currencies. Those who are holding short USD positions could partially hedge into the Asian session by buying USD vs CAD and CHF.. targetting 1.2360s and 1.1390s respectively.