Archived IMT (2009.04.22)

Another Canadian rendez-vous tomorrow with the Bank of Canada at (14:30 GMT) as it releases its monetary policy report, followed by a news conference at 1515 GMT detailing the framework of its newly established quantitative easing policy. As BoC Governor Mark Carney and Senior Deputy Governor Paul Jenkins lay out the economic rationale (downgrading CPI and GDP growth), CAD seen pressured anew. We saw how markets reacted after the Tuesday decision to cut rates by 25 bps to 0.25%. With CAD falling in the last hours of NY trade on falling equities, this may be the set up to 1.2580 and 1.2660. Stops still recommended at 1.2270-90.